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. 1983 Mar;4(3):71-82.

Evaluation of the maximum allowable cost program

A J Lee, D Hefner, A Dobson, R Hardy Jr

Evaluation of the maximum allowable cost program

A J Lee et al. Health Care Financ Rev. 1983 Mar.

Abstract

This article summarizes an evaluation of the Maximum Allowable Cost (MAC)-Estimated Acquisition Cost (EAC) program, the Federal Government's cost-containment program for prescription drugs. The MAC-EAC regulations which became effective on August 26, 1976, have four major components: (1) Maximum Allowable Cost reimbursement limits for selected multisource or generically available drugs; (2) Estimated Acquisition Cost reimbursement limits for all drugs; (3) "usual and customary" reimbursement limits for all drugs; and (4) a directive that professional fee studies be performed by each State. The study examines the benefits and costs of the MAC reimbursement limits for 15 dosage forms of five multisource drugs and EAC reimbursement limits for all drugs for five selected States as of 1979.

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References

    1. American Druggist. Use of Consumer Leverage to Reduce Prescription Costs. Nov, 1979. p. 17.
    1. Food and Drug Administration. Approved Drug Products with Proposed Therapeutic Equivalence Evaluations. Jan, 1979.
    1. Health Care Financing Administration. Guide to Prescription Drug Costs. Apr, 1980.
    1. Henderson James M, Quandt Richard E. Microeconomic Theory. McGraw Hill, Inc.; 1971.
    1. Lee A James, et al. Health Care Financing Grants and Contracts Reports. Health Care Financing Administration; Apr, 1981. Evaluation of the Maximum Allowable Cost (MAC) for Drugs Program: Final Report. Pub. No. 03102.

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