{"id":31217,"date":"2026-10-09T19:48:36","date_gmt":"2026-10-09T14:48:36","guid":{"rendered":"https:\/\/pakjazbo.com\/?p=31217"},"modified":"2026-10-09T19:48:38","modified_gmt":"2026-10-09T14:48:38","slug":"pharma-lobby-sues-trump-administration-over-medicare-drug-price-cuts","status":"publish","type":"post","link":"https:\/\/pakjazbo.com\/?p=31217","title":{"rendered":"Pharma lobby sues Trump administration over Medicare drug price cuts"},"content":{"rendered":"\n

The pharmaceutical industry\u2019s top lobby group on Wednesday sued to invalidate the Trump administration\u2019s \u200cefforts to benchmark US drug prices to lower costs overseas in the Medicare health insurance program, arguing that it is an illegal government overreach.<\/strong><\/p>\n\n\n\n

The GLOBE rule intends to set hospital drug prices for Medicare patients. Its final version was published last week on exactly how a \u201cmost-favored-nation\u201d pricing system based \u200bon what is paid in a group of comparable countries would be integrated in the Medicare Part B \u200bprogram.<\/p>\n\n\n\n

The PhRMA lobby group filed its lawsuit in the US District Court for the District of Columbia \u2060against Health Secretary Robert F. Kennedy Jr., the US Department of Health and Human Services he runs, and the Centers \u200bfor Medicare & Medicaid Services and two of its officials.<\/p>\n\n\n\n

The lobby group argues in its lawsuit that CMS, Medicare\u2019s regulator, has stretched \u200bthe authority of a program to test new pricing ideas into rewriting Medicare\u2019s pricing structure without congressional action.<\/p>\n\n\n\n

Congress has given CMS \u201ca little bit of authority to test models,\u201d PhRMA General Counsel Jim Stansel said in an interview. \u201cInstead, CMS is doing exactly what Congress has declined to do multiple times \u200bover the last several years, and that\u2019s to replace the pricing structure in Medicare with a most-favored-nation structure.\u201d<\/p>\n\n\n\n

Medicare is the US \u200bgovernment program that provides health coverage to about 70 million people aged 65 and older or with disabilities.<\/p>\n\n\n\n

HHS was not immediately available to \u200ccomment on \u2060the lawsuit. In the finalized version of the rule, however, the agency argued that it was not overstepping its bounds, writing, \u201cCMS is acting within a detailed, purpose specific statutory framework that Congress designed precisely for this type of model test.\u201d<\/p>\n\n\n\n

The rule is expected to have limited reach. CMS plans to waive the requirement for manufacturers that have signed separate deals with the White House \u200bto participate in the price-setting \u200bmodel, according to the rule. Trump \u2060has already signed deals with more than two dozen drugmakers, including many of the world\u2019s largest, such as Pfizer, Eli Lilly and Novo Nordisk.<\/p>\n\n\n\n

The pricing regime may ultimately apply to as few \u200bas four drugmakers after exempting those companies.<\/p>\n\n\n\n

The final rule also sharply reduced the government\u2019s projected \u200bsavings from the \u2060model. HHS now estimates the program will reduce Medicare Part B spending by about $440 million over the 7-year model period, compared with roughly $11.9 billion projected in the proposed rule published last year.<\/p>\n\n\n\n

In 2020, PhRMA successfully sued to block a previous incarnation of most-favored-nation pricing, but that \u2060rule was \u200binvalidated on procedural grounds because the administration had rushed it out without \u200bgiving the public a chance to comment.<\/p>\n\n\n\n

Also named in the suit were CMS Administrator Dr. Mehmet Oz, the agency\u2019s innovation center that is running the most-favored-nation pricing \u200bpilot and the director of that division, Abe Sutton.<\/p>\n\n\n\n

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The pharmaceutical industry\u2019s top lobby group on Wednesday sued to invalidate the Trump administration\u2019s \u200cefforts to benchmark US drug prices to lower costs overseas in the Medicare health insurance program, arguing that it is an illegal government overreach. The GLOBE rule intends to set hospital drug prices for Medicare patients. Its final version was published […]<\/p>\n","protected":false},"author":1,"featured_media":31218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","inline_featured_image":false,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"no","rop_publish_now_accounts":{"facebook_3859443944190656_798604363342440":""},"rop_publish_now_history":[{"account":"facebook_3859443944190656_798604363342440","service":"facebook","timestamp":1791557361,"status":"success"}],"rop_publish_now_status":"done","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[52],"tags":[],"class_list":["post-31217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/posts\/31217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31217"}],"version-history":[{"count":1,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/posts\/31217\/revisions"}],"predecessor-version":[{"id":31219,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/posts\/31217\/revisions\/31219"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=\/wp\/v2\/media\/31218"}],"wp:attachment":[{"href":"https:\/\/pakjazbo.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakjazbo.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}