Average Manufacturer Price

Based on 2006 average utilization and discounts, the average manufacturer price (AMP) appears to be ~10% less than the average AWP discounts offered to employers. This amounts to ~$6 per retail prescription. The government proposes using a percentage mark-up to AMP in addition to the dispensing fee. Another option could use an increase to the dispensing fee. For example, add $9 to the generic dispensing fee and $3 for the brands. This creates an incentive for pharmacies to increase the use of generics. In a more consumer-driven model, a lower generic dispensing fee may be more appropriate.