Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Drugmakers Sue HHS to Invalidate Medicaid Drug Price Rebate Rule

May 21, 2021, 3:43 PM

A new CMS rule requiring drugmakers to include discounts they offer directly to patients when determining the “best price” of drugs for purposes of Medicaid’s drug rebate program is invalid, a suit filed in federal court Friday says.

The final rule issued by the Centers for Medicare and Medicaid Services is inconsistent with the Medicaid rebate statute and must be vacated and set aside, Pharmaceutical Research and Manufacturers of America said in a complaint filed in the U.S. District Court for the District of Columbia.

Additionally, it penalizes drugmakers for providing financial assistance to patients who otherwise wouldn’t be able ...