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AAM All Access Podcast - Dan Leonard speaks to AAM's Lisa Parks and Monét Stanford
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The Medicaid Generics Penalty is paid by generic drug manufacturers when the “Average Manufacturer Price” (AMP) of a generic drug sold to Medicaid rises faster than the Consumer Price Index (CPI) over a three-month period.
WASHINGTON, DC (September 19, 2017) — Today, the Association for Accessible Medicines (AAM) and its Biosimilars Council released an analysis finding that if the Centers for Medicare & Medicaid Services (CMS) were to revise its current reimbursement policy for biosimilar medicines, the federal government could save $11.4 billion on medicines over the next 10 years.
WASHINGTON, DC (September 19, 2017) – Access to safe, affordable generic medication is a critical lifeline to millions of patients, with individuals and families receiving coverage under Medicaid coverage saw their prescription drug costs reduced by $512 on average last year.
As a way of assessing the potential future impact of the CPI-based Medicaid Generics Penalty, Bates-White Economic Consulting examined publicly available data on historical drug prices and performed calculations of the potential impact of CPI-based rebates had they been in place in the past. This report shows evidence to suggest that in certain cases, these price regulations may have precisely the opposite of their intended effect.
The ninth annual Generic Drug Access and Savings in the U.S. report demonstrates the vital role that generics and biosimilars play in the United States’ healthcare system. For the first time, the third-party researchers who conducted the study analyzed the differences between brand and generic abandonment behaviors and found some surprising results.
Statement of Chester “Chip” Davis Jr., President and CEO of the Association for Accessible Medicines on the Confirmation of Seema Verma as Administrator of the Centers for Medicare and Medicaid Services: