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Medicaid AMP lawsuit delayed

Executive Summary

A lawsuit seeking to block CMS from implementing a rule that would reimburse pharmacies 250 percent of the average manufacturer price for the least expensive drug in a multi-source group has been delayed because of the change of administration in the White House. The National Association of Chain Drug Stores, the National Community Pharmacists Association (who brought the original suit to keep the regulations from going into effect) and HHS requested the delay since CMS has yet to resolve any regulatory issues related to the definition of "multiple source drug." A hearing on the case had been scheduled for Feb. 25. Participants in the case do not expect action until at least the middle of May. A judge in the case granted a temporary injunction to prevent the rule from going into effect (1"The Pink Sheet," Dec. 17, 2007, In Brief). The Medicare Improvements for Patients and Providers Act delayed implementation of the rule through Sept. 30, 2009 (2"The Pink Sheet," July 21, 2008, p. 21). During the debate on the economic stimulus package in the Senate, Sens. Blanche Lincoln, D-Ark., and Debbie Stabenow, D-Mich., introduced an amendment that would have extended the delay through June 30, 2010, but no action was taken

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