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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.
Manufacturers of drugs that are covered under the Medicaid program are required to report the Average Manufacturer Price.
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.
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.
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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