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What is a Multiple Source Drug? A Comprehensive Legal Overview
Definition & Meaning
A multiple source drug is a medication that is available from both a brand-name manufacturer and multiple generic manufacturers. This means that there are at least two different products that are considered therapeutically equivalent, meaning they work the same way in the body and have the same clinical effect. These drugs must also meet specific standards set by the Food and Drug Administration (FDA) regarding their formulation and effectiveness.
Table of content
Legal Use & context
The term "multiple source drug" is primarily used in the context of healthcare law and regulations, particularly in relation to Medicaid and pharmaceutical pricing. It is relevant in discussions about drug reimbursement and pricing strategies, as well as in legal frameworks governing the approval and marketing of medications. Users may need to navigate forms or procedures related to drug coverage, which can often be managed through legal templates available from services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For example, a brand-name medication like Lipitor, which is used to lower cholesterol, has multiple generic versions available. These generics are considered multiple source drugs because they are therapeutically equivalent and have been approved by the FDA.
Relevant laws & statutes
One key statute that defines multiple source drugs is 42 USCS § 1396r-8(k)(7)(A)(i). This law outlines the criteria for what constitutes a multiple source drug in relation to Medicaid drug rebates and pricing.
Comparison with related terms
Term
Definition
Difference
Generic Drug
A medication that is equivalent to a brand-name drug in dosage form, strength, route of administration, quality, and performance characteristics.
All multiple source drugs are generic, but not all generics are classified as multiple source drugs.
Brand-name Drug
A drug marketed under a proprietary, trademark-protected name.
Multiple source drugs include both brand-name and generic options.
Common misunderstandings
What to do if this term applies to you
If you are navigating issues related to multiple source drugs, consider reviewing your medication options with your healthcare provider. You may also want to explore legal form templates available through US Legal Forms to assist with any necessary documentation. If your situation is complex, seeking advice from a legal professional may be beneficial.
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Varies based on the medication and insurance coverage.
Jurisdiction
Federal and state regulations apply.
Possible Penalties
Potential for reduced reimbursement rates under Medicaid.
Key takeaways
Frequently asked questions
A generic drug is simply a non-brand version of a medication, while a multiple source drug specifically refers to drugs that have both brand-name and generic versions available.
You can check the FDA's publication of approved drug products or consult with your pharmacist or healthcare provider.
Generally, yes, multiple source drugs tend to be less expensive, but prices can vary based on insurance coverage and pharmacy pricing.