NACDS, NCPA voice approval of CMS’ redefinition of multiple source drugs

ALEXANDRIA, Va. National Association of Chain Drug Stores president and chief executive officer Steve Anderson and National Community Pharmacists Association chief executive officer and executive vice president Bruce Roberts released a statement today announcing their satisfaction with the Centers for Medicare and Medicaid Services for revising its definition of multiple source drugs.

According to the department of Health and Human Services the definition of a multiple source drug is a drug marketed or sold by two or more manufacturers or labelers, or a drug marketed or sold by the same manufacturer or labeler under two or more different proprietary names or both under a proprietary name and without such a name.

The NACDS and NCPA also stated that although they acknowledge the revision, the lawsuit they filed which brought about this revision is still in place. The lawsuit is still in place to help make sure that CMS will in fact comply with the Medicaid statute. The organizations noted that, “this revised rule does not eliminate the lawsuit filed by NACDS and NCPA in November 2007 to block the average manufacturers price rule, which would drastically cut reimbursement payments to community pharmacies that serve disadvantaged Americans in the Medicaid program.”

Also, the organizations stated that, “This rule does not address two other major arguments in the lawsuit: 1) the AMP rule does not comply with the Social Security Act’s definition of AMP; and 2) the AMP rule improperly applies federal upper limits on reimbursement to non-equivalent drug products. While we are hopeful for continued success in court, NACDS and NCPA will continue to encourage Congress to work with pharmacy to find more appropriate models for pharmacy reimbursement for generics under Medicaid.”