Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

LOUISIANA MEDICAID's USE OF "UNMODIFIED AWP" WILL BE SUBJECT of a Health Care Financing Administration hearing in Dallas (tentatively scheduled Sept. 21). The hearing was requested by Louisiana after HCFA decided that it would disapprove the state agency's plan to use average wholesale prices published in the Blue Book to determine estimated pharmacy acquisition costs for prescription drugs. In a letter scheduling the hearing, HCFA Administrator William Roper, MD, wrote to Louisiana Department of Health and Human Resources Deputy Assistant Secretary Howard Prejean: "The issues in this matter are (1) whether use of an unmodified AWP constitutes the agency's 'best estimate' of current prices as required [by federal regulations], and whether payments resulting from the use of the unmodified AWP are consistent with efficiency, economy, and quality of care as required by . . . the Social Security Act." Roper added that the hearing will also examine whether HCFA can be barred "from applying its determination of drug availability to the state." The hearing will occur exactly three years after seven national pharmaceutical associations sued HCFA to block efforts to force states in Region VI and other HCFA regions to discount AWP for setting Medicaid reimbursements. Louisiana is in HCFA Region VI. On Aug. 18, the Louisiana Pharmacists Association asked to participate in the hearing. In its petition, the state association asserted that Louisiana's plan to rely on published AWPs for estimated acquisition cost "satisfies all legal requirements and should be approved." The association also maintained that "in recent years reimbursement for the services of pharmacists under the Louisiana Medicaid Program has been substantially reduced." NARD petitioned on Aug. 18 to participate in the hearing as an amicus curiae. The National Association of Chain Drug Stores is reviewing the situation and said it will submit comments and may ask to testify. The American Pharmaceutical Association also plans to submit comments on the case.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth




Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts