Trump Cannot Proceed with Pilot Drug Rebate Program

The Trump (R) Administration cannot require Hospitals serving Low-Income Americans, to Pay Full Price Upfront for the First 10 Medications to become Subject to Medicare Drug Price Negotiations and Wait for Rebates, a U.S. Appeals Court Ruled on Wednesday.

A Three-Judge Panel of the Boston-based 1st U.S. Circuit Court of Appeals, Rejected a Request by Trump's Administration to put On-Hold an Injunction a Judge in Maine Issued, at the Behest of the American Hospital Association and several Healthcare Providers that Blocked the New Program.

The Panel said the Health Resources and Services Administration's (HRSA) Program Upended a Decades-Long Practice of Providing Safety-Net Hospitals serving Rural and Low-Income Communities with Upfront Discounts to Buy Prescription Drugs.

The Judges, All Appointees of President Joe Biden (D), pointed to a Lack of Evidence that the Agency considered the Impact the Program would have on Hospitals, who said the Plan would Saddle them with Hundreds-of-Millions of Dollars in New Costs.

Rick Pollack, the Head of the American Hospital Association (AHA), in a Statement welcomed the Ruling, Saying the Program "would have a devastating effect on America’s most vulnerable patients and communities, and the hospitals that serve them."

The U.S. Department of Health and Human Services (HHS), which Oversees the Agency, did Not immediately respond to Requestspfor-Comment.

The Inflation Reduction Act (IRA), a 2022 Law Enacted under Biden, allowed the Government to Negotiate a Maximum Fair Price that Medicare, the Healthcare Program for People aged 65 and Older or those with Disabilities, would Pay for certain Costly Drugs.

State Medicaid Programs, which Provide Hhealth Insurance for Low-Income Americans, in Collaboration with the Federal Government, receive a Rebate to Ensure they Only Pay the Medicare-Negotiated Price on behalf of Qualifying Patients.

The First 10 Drugs to be Subject to Negotiations include: the Blood Thinner Eliquis, sold by Pfizer and Bristol Myers Squibb; Johnson & Johnson's Rival Medication Xarelto; and Merck & Co's Diabetes Drug Januvia.

Several of the Medications were already Subject to the Federal 340B Drug Pricing Program, which for Decades has Required Drugmakers seeking Medicaid and Medicare Coverage for their Drugs to Provide Upfront Discounts to Safety-Net Healthcare Providers.










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