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H.R. 3276House116th Congress (2019-2021)In Committee

Fair AMP Act

To amend title XIX of the Social Security Act to exclude authorized generic drugs from calculation of the average manufacturer price for purposes of the Medicaid drug rebate program, and for other purposes.

Also known as Fair and Accurate Medicaid Pricing Act of 2019

Sponsored by Joseph P. Kennedy IIIRep. Joseph P. Kennedy III (D-MA)
Introduced June 13, 2019

AI-Generated Summary

Updated April 14, 2026 at 6:19 AM UTC

The Fair and Accurate Medicaid Pricing (Fair AMP) Act would change how Medicaid calculates drug rebates by excluding authorized generic drugs from the average manufacturer price used in the formula. It also updates the definition of “wholesaler” to no longer include manufacturers. These changes would affect drug manufacturers, generic drug makers, and state Medicaid programs that receive rebate payments.

Key Provisions

  • Changes the Medicaid drug rebate formula so that the average manufacturer price (AMP) does not include authorized generic drugs, meaning those generics won’t be counted when calculating rebates that states receive.
  • Removes drug manufacturers from the legal definition of “wholesaler” used in the Medicaid rebate program, which could affect how rebates are reported and paid.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Health.

Health Subcommittee

June 14, 2019

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HouseIntro Referral

Introduced in House

June 13, 2019

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

June 13, 2019

HouseCommittee

Referred to the Subcommittee on Health.

Health Subcommittee

June 14, 2019

Bill Text

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Introduced in HouseIssued June 13, 2019

I

116th CONGRESS

1st Session

H. R. 3276

IN THE HOUSE OF REPRESENTATIVES

June 13, 2019

Mr. Kennedy (for himself, Mr. O'Halleran, Mr. Kinzinger, and Mr. Smith of Missouri) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend title XIX of the Social Security Act to exclude authorized generic drugs from calculation of the average manufacturer price for purposes of the Medicaid drug rebate program, and for other purposes.

1.

Short title

This Act may be cited as the Fair and Accurate Medicaid Pricing Act of 2019 or the Fair AMP Act.

2.

Excluding authorized generic drugs from calculation of average manufacturer price under the Medicaid drug rebate program; excluding manufacturers from definition of wholesaler

(a)

In general

Subparagraph (C) of section 1927(k)(1) of the Social Security Act (42 U.S.C. 1396r–8(k)(1)) is amended—

(1)

in the subparagraph heading, by striking Inclusion and inserting Exclusion;

(2)

by striking a new drug application and inserting the manufacturer's new drug application; and

(3)

by striking inclusive and inserting exclusive.

(b)

Excluding manufacturers from definition of wholesaler

Section 1927(k)(11) of the Social Security Act (42 U.S.C. 1396r–8(k)(11)) is amended—

(1)

by striking manufacturers,; and

(2)

by striking manufacturer's and.

(c)

Effective date

The amendments made by this section shall take effect on the first day of the first fiscal quarter that begins after the date of enactment of this Act.