This letter from the Director of the National Association of State Medicaid Directors (NASMD) to Cynthia Mann, Director Center for Medicaid, CHIP and Survey Certification at the Centers for Medicare & Medicaid Services (CMS) address state Medicaid directors' concerns regarding CMS guidance on Medicaid prescription drug rebates under health care reform.  The letter states: The State Medicaid Director’s letter of April 22, 2010, regarding Medicaid prescription drug rebates under the Affordable Care Act (SMDL #10-006) provides that for brand name drugs now subject to a 23.1% or 17.1% minimum rebate, CMS plans to offset an amount equal to the non-Federal share of the increase in the minimum rebate, "regardless of whether States received a rebate amount based on the difference between AMP and best price." NASMD believes that any such offset from a rebate based on the difference between AMP and best price would be a clear violation of the Affordable Care Act.

Full letter: NASMD Letter to CMS on Medicaid Pharmacy Rebats (PDF | 43.22 KB)

Attachment: Additional Questions from State Medicaid Agencies (PDF | 47.88 KB)   

Kohler, Anne. Letter from the National Association of State Medicaid Directors (NASMD) to Cynthia Mann, Director Center for Medicaid, CHIP and Survey Certification, Centers for Medicare & Medicaid Services. Re: Rebates. May 18, 2010.