| WASHINGTON D.C. — Today, the U.S. Court of Appeals for the Fifth Circuit ruled that the National Infusion Center Association (NICA) — which is backed by the pharmaceutical lobbying group The Pharmaceutical Research and Manufacturers of America (PhRMA) — has standing to pursue its Due Process claim, but not two other claims it originally filed. The decision reversed, in part, a decision made by the U.S. District Court for the Western District of Texas earlier this year, which dismissed NICA’s lawsuit in its entirety. In a partial victory for patients and consumers, the Court of Appeals limited the claims NICA can bring. The District Court will now hear the case on the merits, similar to other suits which have been consistently rejected in other circuits.
Merith Basey, Executive Director of Patients For Affordable Drugs, issued the following statement:
“Make no mistake: the pharmaceutical industry is fighting tooth and nail to undermine Medicare negotiation and restore its power to price gouge everyday Americans without restraint. Unlike every other sector in health care where Medicare has a process to arrive at the prices it is willing to pay – such as doctor fees, hospital costs, and equipment – pharmaceutical companies have enjoyed a unique exemption from any form of direct negotiation with Medicare for more than two decades.
“While this procedural decision is disappointing, it does not change the pressing reality of abusive drug costs which millions of Americans face everyday and it does not change the fact that Medicare negotiation is overwhelmingly popular among the American people. Despite Big Pharma’s multi-million dollar lobbying campaign, the reforms from the Inflation Reduction Act are already reining in prescription drug costs for millions of patients.
“To date, federal judges have rejected every single lawsuit brought by the pharmaceutical industry and its allies to block implementation of Medicare negotiation. We are hopeful for a similar result in this instance. Patients fought hard for these reforms and Patients For Affordable Drugs will continue to defend Medicare negotiation in the face of these attacks.”
Patients For Affordable Drugs filed an amicus brief last week in the Third Circuit to support the government’s opposition to the lawsuits and amplify the experiences of patients harmed by high drug prices. We have also gathered nearly 200,000 signatures on a petition calling on the pharma CEOs to drop their lawsuits against Medicare negotiation.
BACKGROUND:
- Medicare negotiation is supported by more than 80 percent of voters.
- The 10 drugs chosen for negotiation were identified as the top spending drugs covered under Medicare Part D without generic or biosimilar equivalents that have been on the market for at least seven years and also meet other selection criteria.
- The negotiation process will only apply to a maximum of 10-15 drugs each year for a maximum of 60 drugs by 2029. Even after reforms take effect, Medicare will continue to be the largest purchaser of prescription drugs, maintaining its status as a significant source of revenue for drug companies, and Americans will still pay the highest drug prices globally.
- P4AD launched the US v Pharma campaign to mobilize patients and advocates to defend the hard-won victory of Medicare negotiation against Big Pharma’s multi-million dollar legal efforts to halt the program from delivering relief to patients.
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