The Social Security Act requires the HHS Office of Inspector General (OIG) to notify the HHS Secretary if the average sales price (ASP) for a particular drug exceeds the drug’s average manufacturer price (AMP) by a threshold of 5%.  If that threshold is met, the Secretary is authorized to disregard the ASP for that drug and substitute the lesser of the widely available market price for the drug or 103% of the AMP. The OIG recently posted several reports identifying specific codes for which Medicare ASP exceeded the AMP by at least 5% during the period spanning the fourth-quarter of 2008 through the second quarter of 2009. The OIG estimates that if Medicare reimbursement for these codes had been based on 103 percent of AMP, Medicare expenditures would have been reduced by millions of dollars. In addition, the OIG points out that while it has issued more than a dozen reports comparing ASPs to AMPs, CMS has yet to make any changes to reimbursement as a result of its findings.