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Friday, Mar 29, 2024

Judge Blocks Rule on Drug Prices in TV Ads

U.S. District Judge Amit Mehta has struck down a Trump administration rule requiring drug makers to put a drug’s list price in television ads, according to statements from the winning party in a lawsuit contesting the validity of the rule. The lawsuit was originally filed by pharma giants Merck & Co., Eli Lilly & Co. and Thousand Oaks-based Amgen Inc., as well as the Association of National Advertisers. The drug makers argued that list prices do not take into account discounts and rebates through health insurance companies and pharmacy benefit managers. The court ruled that the Health and Human Services Department would violate free speech and exceed the agency’s statutory authority, according to an article on Seeking Alpha July 9. The government didn’t have the authority to impose the rule without Congress taking action, Mehta said, in a subsequent Barron’s article. “The judge granted the stay but he went beyond that. He said they did not have the authority to issue the rule. Unless they can overcome his ruling, it’s dead,” said Dan Jaffe, vice president of government relations for the Association of National Advertisers. “I suppose now it’s in the government’s court. The question is whether they’re going to go for an appeal. They had a very strong, negative reaction to the ruling, basically stating that this was a ruling by an Obama judge and the industry was trying to obfuscate its prices.” The Trump administration has 90 days to appeal. The federal requirement on pricing in ads is the latest in a series of proposals that attempt to curb rising prescription drug prices. Although the court decision stops the rule for now, the Trump administration will discuss its next step with the Justice Department. “We are disappointed in the court’s decision and will be working with the Department of Justice on next steps related to the litigation. President Trump and Secretary (Alex) Azar remain focused on lowering drug prices and empowering patients through more transparency in healthcare costs,” said Caitlin Oakley, national spokesperson with the Office of the Assistant Secretary for Public Affairs at the Health and Human Services Department. “Although we are not surprised by the objections to transparency from certain special interests, putting drug prices in ads is a useful way to put patients in control and lower costs, and as seen from the president’s executive order, we are working on many different avenues for delivering transparency.” Oakley is referring to an executive order signed by Trump in late June that tasked the department with developing a policy and following through on the rule-making process.

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