Pharmaceutical industry sues Trump administration over new drug pricing rule

PhRMA, the main lobbying organization for US pharmaceutical companies, is suing the Trump administration. The dispute concerns a new rule under which Medicare would determine reimbursement for certain hospital-administered drugs based on prices charged in other countries.

According to PhRMA, Medicare's regulator is exceeding its authority and changing drug pricing rules without Congressional approval.

The lawsuit was filed in a federal court in Washington. Defendants include Health Secretary Robert F. Kennedy Jr. and the Centers for Medicare and Medicaid Services.

The final rule will have a smaller impact than originally planned. It will not apply to companies that have already reached separate drug pricing agreements with the White House. More than twenty manufacturers have such agreements, including Pfizer, Eli Lilly and Novo Nordisk.

US authorities estimate the new rule could save approximately $440 million over seven years.

Source: Reuters