Health1 min read

STAT+: PhRMA sues over Trump policy mandating lower drug prices in Medicare

By · Published by Everything Blog

In short

Pharmaceutical industry group PhRMA has filed a lawsuit against the Trump administration over a Medicare drug pricing program, asserting it exceeds the statute's authority. The program, known as the "most-favored nation" initiative, ties Medicare drug prices to those in peer countries, which is not authorized under the law. The lawsuit targets the program's exemption for a few companies, aiming to limit its impact.

Key points

  • PhRMA, the main trade group for the pharmaceutical industry, has filed a lawsuit against…: PhRMA, the main trade group for the pharmaceutical industry, has filed a lawsuit against the Trump administration over a Medicare drug pricing program.
  • The program, known as the "most-favored nation" initiative, ties Medicare drug prices to…: The program, known as the "most-favored nation" initiative, ties Medicare drug prices to those in peer countries, which is not authorized under the law.
  • The lawsuit targets the program's exemption for a few companies, aiming to limit its impa…: The lawsuit targets the program's exemption for a few companies, aiming to limit its impact.

WASHINGTON — The brand drug industry’s main trade group is suing the Trump administration over a pilot program tying Medicare drug prices to those in peer countries.

The Pharmaceutical Research and Manufacturers of America said Wednesday that it had filed a complaint in the U.S. District Court for the District of Columbia asserting that the so-called “most-favored nation” pilot in Medicare Part B exceeds Medicare’s statutory authority.

The pilot, called GLOBE, is not expected to have much impact because the administration exempted all but a handful of companies in return for their agreement to voluntary deals to charge Medicaid MFN prices.

This article is exclusive to STAT+ subscribers

Unlock this article — plus daily coverage and analysis of the pharma industry — by subscribing to STAT+.

Already have an account? Log in

Original source: www.statnews.com

Health