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AMP stands for Average Manufacturer Price, which is a measure of the average price paid to manufacturers for a drug in the United States by wholesalers for the Medicaid program.
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Manufacturers of drugs that are covered under the Medicaid program are required to report the Average Manufacturer Price.
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Manufacturers must complete the AMP calculation using pricing data and submit it through the appropriate forms to CMS (Centers for Medicare & Medicaid Services) in accordance with guidelines.
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The purpose of AMP is to determine the reimbursement rate for drugs under the Medicaid program and to ensure that manufacturers comply with pricing regulations.
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Manufacturers must report the prices for covered outpatient drugs sold to various classes of wholesalers, including the prices for Medicaid and non-Medicaid sales.
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