Average Manufacturer Price (AMP) is defined as

Average Manufacturer Price (AMP) is defined as

• A. The average price paid to manufacturers by wholesalers for drugs distributed
• B. The price charged by pharmacies to patients
• C. The price negotiated with providers
• D. The price after rebates

Answer: (A)

Average Manufacturer Price is the average price wholesalers actually pay to manufacturers for drugs distributed to the retail class of trade in the United States. This figure comes from real wholesale transaction data and serves as the baseline used to determine Medicaid rebates. It is not the price a patient pays at the pharmacy, nor the price negotiated with providers, nor the net price after rebates to other parties. In short, AMP reflects the wholesale, in-market price paid to manufacturers.

Average Manufacturer Price is the average price wholesalers actually pay to manufacturers for drugs distributed to the retail class of trade in the United States. This figure comes from real wholesale transaction data and serves as the baseline used to determine Medicaid rebates. It is not the price a patient pays at the pharmacy, nor the price negotiated with providers, nor the net price after rebates to other parties. In short, AMP reflects the wholesale, in-market price paid to manufacturers.