Pfizer Copay Ruling Deals Fresh Blow to Pharma Medicare Aid

A Second Circuit ruling blocking Pfizer Inc.'s proposal to help middle-income Medicare beneficiaries afford an expensive heart drug may end an effort by drugmakers to boost sales by eliminating copays for many patients.

The US Court of Appeals for the Second Circuit upheld a Department of Health and Human Services advisory opinion that Pfizer’s proposal would violate the Anti-Kickback Statute and thwart Congress’s intent to use copays to control Medicare costs.

The court win for HHS, combined with a broad Department of Justice enforcement push against such drugmaker subsidies, creates a tough regulatory barrier against pharmaceutical companies that seek ...