Average Manufacturer Price (AMP)
Definition
Average Manufacturer Price (AMP) is a drug pricing metric defined and administered by CMS. It represents the average price paid to the manufacturer by drug wholesalers for drugs distributed to retail community pharmacies, as well as by retail community pharmacies that purchase directly from the manufacturer.
AMP is the starting point for the 340B ceiling price calculation: 340B Ceiling Price = AMP minus Unit Rebate Amount (URA). It is also used in the Medicaid Drug Rebate Program to calculate the rebates manufacturers owe to state Medicaid programs. AMP is reported by manufacturers to CMS on a monthly basis and is used for ceiling price calculations on a quarterly basis.
AMP is not publicly available in detail, but HRSA publishes the resulting 340B ceiling prices in OPAIS quarterly. When manufacturers restate their reported AMP for a prior period, it can result in an AMP true-up, where covered entities that paid above the corrected ceiling price may be entitled to refunds.
Frequently Asked Questions
Why Average Manufacturer Price (AMP) Matters
AMP is the mathematical foundation of the 340B ceiling price. Errors or restatements in AMP reporting by manufacturers can affect the ceiling prices covered entities should be paying. Understanding AMP helps covered entities evaluate pricing accuracy and identify potential overcharges.
How Virtue 340B Uses It
Virtue 340B monitors pricing accuracy for covered entity clients, including evaluating whether transaction prices are consistent with published ceiling prices derived from AMP calculations.