Pharma lobby sues Trump administration over Medicare drug price cuts
XLV•PhRMA sued to invalidate the GLOBE rule, which would set hospital drug prices for Medicare patients using prices in comparable countries. HHS estimates the seven-year model will reduce Medicare Part B spending by about $440 million, down from $11.9 billion projected in the proposed rule.
1. PhRMA challenges rule
PhRMA sued the Trump administration in U.S. District Court in Washington, arguing that Medicare’s regulator exceeded its authority by using a test program to change Medicare’s pricing structure without congressional action. The GLOBE rule would apply a most-favored-nation pricing model to hospital drugs covered by Medicare Part B.
2. Limited reach projected
CMS plans to waive participation for manufacturers that have signed separate drug-pricing deals with the White House. The rule’s pricing regime may ultimately apply to as few as four drugmakers. HHS estimates the model will reduce Medicare Part B spending by about $440 million over seven years, compared with roughly $11.9 billion projected in the proposed rule.
