Following up on his ruling from the bench on December 14, 2007, United States District Judge Royce C. Lamberth on December 19, 2007, signed an order for a preliminary injunction that blocks the Medicaid pharmacy reimbursement final rule issued by the Centers for Medicare and Medicaid Services (CMS). The temporary injunction is the result of a motion by NACDS and the National Community Pharmacists Association.

The text of the order includes positive statements about the likelihood of our success upon the Court's consideration of the merits of the case, the irreparable harm of the AMP rule for pharmacies, and the public interest to be served through an injunction, “as it is in the public interest for federal departments and agencies to operate in compliance with the law and Medicaid beneficiaries may find access to their retail community pharmacies reduced or eliminated should the injunction not be issued.”

NACDS and NCPA’s legal action formally began On November 7, when the associations filed a lawsuit in the United States District Court for the District of Columbia against the U.S. Department of Health and Human Services, the Centers for Medicare and Medicaid Services (CMS), as well as, in their official capacities, Health and Human Services Secretary Michael O. Leavitt and CMS Acting Administrator Kerry Weems. The lawsuit challenges CMS-imposed Medicaid pharmacy reimbursement reductions scheduled to be implemented via rulemaking in January 2008 that would reduce reimbursement rates below what is permitted by law. Both organizations remain committed to working for a long-term legislative solution as well.

Recent Additions:

Reply Brief for Motion to Compel, with Exhibits

Second Amended Complaint

Order Accepting Complaint

Motion to Compel

New rule defining "Multi Source Drug"

Other Resources:

CMS Acknowledges Legal Concerns with Definition of ‘Multiple Source Drug’

Interim Final Rule Development is Step in Right Direction in Lawsuit to Block Pharmacy Reimbursement Cuts

Impact of the Deficit Reduction Act of 2005 on Pharmacies by State

Motion for Leave to file First Amended Complaint for Injuctive and Declatory Relief

First Amended Complaint for Injunctive and Declaratory Relief

CMS Interim Final Rule Published March 14: Revised Definition of "Multiple Source Drug

Multiple Source Drug Rule Comments By NACDS and NCPA

Ads designed to advance legislative solution

NACDS and NCPA Statement upon filing their complaint

NACDS and NCPA Letter to Capitol Hill upon filing their complaint

Average Manufacturers Price (AMP) Issue Timeline

Frequently Asked Questions about the NACDS and NCPA lawsuit

Text of the NACDS and NCPA complaint

NACDS and NCPA motion for preliminary injunction and request for expedited hearing

Economic Analysis of AMP Rule

Defendant’s opposition to NACDS and NCPA motion for preliminary injunction and request for expedited hearing

Reply of NACDS and NCPA in support of their motion for preliminary injunction

Transcript of December 14 hearing regarding the preliminary injunction

Court order granting the preliminary injunction