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AMP Rule Tells Manufacturers To “Make Reasonable Assumptions” In Determining Fair Market Value For Service Fees

 
• By Scott Steinke

CMS’ proposed rule on average manufacturer prices for Medicaid relies on examples given in the Affordable Care Act for its list of “bona fide service fees” that manufacturers should exclude from the AMP calculation, but does not further expand on them. The proposed rule also avoids defining “fair market value” for such fees.

Manufacturers who were hoping CMS’ rule on average manufacturer prices for drugs would provide clarity on what qualifies as a bona fide service fee and what constitutes fair market value for such a fee when calculating AMP for Medicaid won’t find many hard answers in the proposed version of the rule.

The proposed rule lists the examples of bona fide services fees provided in the law, but does not further expand...

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