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S. 1785Senate116th Congress (2019-2021)In Committee

Fair AMP Act

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.

Also known as Fair and Accurate Medicaid Pricing Act of 2019

Sponsored by Margaret Wood HassanSen. Margaret Wood Hassan (D-NH)
Introduced June 11, 2019

AI-Generated Summary

Updated April 14, 2026 at 6:04 AM UTC

The Fair and Accurate Medicaid Pricing (Fair AMP) Act would change how Medicaid calculates drug rebates. It removes authorized generic drugs from the average manufacturer price (AMP) used for those rebates and also takes manufacturers out of the legal definition of "wholesaler" under the Medicaid drug rebate program. The changes would affect drug manufacturers, generic drug makers, and the Medicaid program’s rebate calculations.

Key Provisions

  • Authorized generic drugs would no longer be counted when computing the average manufacturer price for Medicaid drug rebates.
  • The definition of "wholesaler" in the Medicaid rebate rules would be amended to exclude manufacturers.
  • The amendments would become effective on the first day of the first fiscal quarter after the law is enacted.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2019

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SenateIntro Referral

Introduced in Senate

June 11, 2019

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2019

Bill Text

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Introduced in SenateIssued June 11, 2019

II

116th CONGRESS

1st Session

S. 1785

IN THE SENATE OF THE UNITED STATES

June 11, 2019

Ms. Hassan (for herself, Mr. Cassidy, Ms. Stabenow, Mr. Cornyn, Mr. Cardin, and Mr. Young) introduced the following bill; which was read twice and referred to the Committee on Finance

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.