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GAO: Medicaid Reimbursement Formula Would Save Money

December 29, 2009
A new Government Accountability Office (GAO) report finds that basing the government’s Medicaid reimbursement rates for drugs on average manufacturer price (AMP) instead of national drug pricing compendia would have lowered federal spending in the 2008 second quarter. But the pharmaceutical industry probably would oppose such a change, Joseph Antos, the American Enterprise Institute’s Wilson H. Taylor scholar in healthcare and retirement policy and a health adviser to the Congressional Budget Office, said.
Drug Industry Daily