International Drug Pricing Rule Faces First Legal Challenges (2)

Dec. 5, 2020, 2:28 AM; Updated: Dec. 5, 2020, 6:28 PM

A Trump administration rule that ties U.S. reimbursement for certain drugs to cheaper foreign prices is unconstitutional and exceeds the authority of the federal Medicare agency, according to two lawsuits filed Friday by industry trade groups.

The lawsuits mark the first legal challenges brought against the new policy, which culminated four years of presidential threats to companies in the drug supply chain to reduce prices or bow to regulation. The administration released the policy as an “interim final rule,” meaning the public can still comment but it’s considered effective upon publication in the Federal Register.

The rule will disrupt patient ...

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