PhRMA sues over Medicare drug pricing model — STAT News
In the United States, in Washington, the industry association of branded drug manufacturers, Pharmaceutical Research and Manufacturers of America (PhRMA), has filed a lawsuit against the Trump administration over a Medicare pilot program that links drug prices to prices in other comparable countries.
Lawsuit over the GLOBE program
As STAT News reports, PhRMA said it filed a complaint with the U.S. District Court for the District of Columbia. The association argues that the Medicare Part B pilot model, based on the most-favored-nation principle, exceeds Medicare's statutory authority.
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The pilot program was named GLOBE. It is intended to test an approach under which Medicare drug prices are tied to prices in comparable countries.
Expected impact of the model
According to the publication, GLOBE is expected to have a limited impact. The administration exempted nearly all companies from participation, except for a few, in exchange for their voluntary agreements to set most-favored-nation prices for Medicaid.
