Trump plan to curb drug costs dealt setback in court

Daily Legal News


A late-term maneuver by President Donald Trump to use lower drug prices paid overseas to limit some of Medicare’s own costs suffered a legal setback Wednesday that appears likely to keep the policy from taking effect before the president leaves office.

U.S. District Judge Catherine C. Blake in Baltimore issued a nationwide injunction that prevents the Centers for Medicare and Medicaid Services, or CMS, from carrying out the so-called “most favored nations” rule as scheduled on Jan. 1. The judge wrote in her temporary order that CMS had failed to follow required procedures for notice and comment before imposing such sweeping changes.

The Trump regulation would tie what Medicare pays for certain drugs administered in a doctor’s office to the lowest price paid among a group of economically advanced countries. It would apply to 50 medications that account for the highest spending under Medicare’s “Part B” benefit for outpatient care.

That group includes cancer drugs and other medications delivered by infusion or injection. Trump announced his new policy at the White House before the Thanksgiving holiday, saying, “the drug companies don’t like me too much. But we had to do it.”

A coalition of groups including the Association of Community Cancer Centers and the Pharmaceutical Research and Manufacturers of American quickly sued to block the rule. Some opponents have likened the Trump policy to a form of socialist price controls.

Blake wrote that the plaintiffs had established a reasonable likelihood their arguments accusing the administration of cutting corners in a rush to regulate would carry the day in a trial. Federal law says that government agencies must provide adequate opportunity for affected parties to comment on proposed regulations. The administration had sought to use emergency authority as a work-around.

The case is hardly trivial, the judge said. “This case deals with a regulation that would for the first time implement the use of a price control mechanism not provided for by Congress,” Blake wrote.

The Health and Human Services department said it is reviewing the ruling, and had no immediate comment.

Trump came into office accusing drug companies of “getting away with murder” and promising to slash costs for American patients. But his administration was unable to drive major drug pricing legislation through Congress.

Even if the Trump rule is ultimately blocked, the idea of using international prices to lower costs for Americans is very much alive. It’s at the heart of House Speaker Nancy Pelosi’s legislation to empower Medicare to negotiate drug prices. And President-elect Joe Biden also supports the approach.

Blake was nominated to be a U.S. district judge by former Democratic President Bill Clinton.

Related listings

  • Wisconsin Supreme Court tosses Trump election lawsuit

    Wisconsin Supreme Court tosses Trump election lawsuit

    Daily Legal News 12/14/2020

    The Wisconsin Supreme Court on Monday rejected President Donald Trump’s lawsuit attempting to overturn his loss to Democrat Joe Biden in the battleground state, ending Trump's legal challenges in state court about an hour before the Electoral C...

  • High court to decide whether Nazi art case stays in US court

    High court to decide whether Nazi art case stays in US court

    Daily Legal News 12/06/2020

    Jed Leiber was an adult before he learned that his family was once part-owner of a collection of centuries-old religious artworks now said to be worth at least $250 million.Over a steak dinner at a New York City restaurant in the 1990s he had asked h...

  •  Giuliani shows at Trump camp lawsuit hearing in Pennsylvania

    Giuliani shows at Trump camp lawsuit hearing in Pennsylvania

    Daily Legal News 11/19/2020

    A hearing on the Trump campaign’s federal lawsuit seeking to prevent Pennsylvania officials from certifying the vote results was set to begin Tuesday after a judge denied the campaign’s new lawyer’s request for a delay.Rudy Giuliani...

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.