PhRMA Sues Trump Admin Over Medicare Drug Price Pilot — SkimNews
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- PhRMA filed a complaint Wednesday in the U.S. District Court for the District of Columbia, arguing the GLOBE pilot in Medicare Part B exceeds Medicare's statutory authority.
- The lawsuit targets the "most-favored nation" pilot, which would peg Medicare Part B drug prices to those paid in peer countries.
- GLOBE is not expected to have much impact because the Trump administration exempted all but a handful of companies from the program.
- Exempted companies received their carve-out in return for agreeing to voluntary deals to charge Medicaid MFN (most-favored nation) prices.
Why it matters: PhRMA's challenge to GLOBE's statutory authority — filed despite the program exempting nearly all manufacturers via voluntary Medicaid pricing deals — tests whether Medicare has the legal basis to benchmark drug prices against peer nations, with implications for future reference-pricing programs the administration or its successors might attempt.
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