Legal
PhRMA Sues Trump Administration Over Medicare Drug Price Pilot
PhRMA, the brand drug industry's main trade group, filed a lawsuit in the U.S. District Court for the District of Columbia against a Trump administration pilot program called GLOBE that ties Medicare Part B drug prices to prices paid in peer countries. The complaint argues the "most-favored nation" pilot exceeds Medicare's statutory authority. The pilot's practical impact is expected to be limited because the administration exempted all but a handful of companies in exchange for voluntary agreements to charge Medicaid most-favored-nation prices. The case was filed Wednesday.
Why it mattersA ruling against the pilot could reshape how CMS can use international price benchmarks for drug reimbursement, with downstream implications for Medicaid's own most-favored-nation pricing deals with manufacturers.