Photographer: Dimas Ardian/Bloomberg
The top pharmaceutical industry lobbying group sued the Trump administration over its Medicare pricing model that seeks to align US drug prices with cheaper ones paid abroad, Nyah Phengsitthy reports.
The Pharmaceutical Research and Manufacturers of America filed suit in federal court in Washington, alleging the government exceeded its statutory authority and violated the Constitution when it recently rubber-stamped the model. The demonstration — set to start Jan. 1 — would test whether alternative methods for calculating Medicare Part B medicine rebates, based on international pricing metrics, will reduce drug costs.
Federal courts blocked President Donald Trump’s first attempt in 2020 to propose a most-favored-nation pricing model. CMS said it can implement the latest demo under Section 1115A of the Social Security Act, which allows it to test new payment models to reduce costs and improve care quality. PhRMA disagreed in its filing.
“The policy doesn’t make medicines more affordable for most beneficiaries, while putting future medical innovation and patient access at risk,” Stephen J. Ubl, president and CEO of PhRMA, said in a statement.