Appeals Court Denies PhRMA Request to Review, Reinstate Injunction Against Maine Rx

A federal appeals court last week rejected a motion from the Pharmaceutical Research and Manufacturers of America to reinstate an injunction against Maine Rx, the AP/Bangor Daily News reports (AP/Bangor Daily News, 6/18). Last May, Maine legislators approved Maine Rx, a first-of-its-kind program that allows the state to act as a pharmaceutical benefit manager for Maine's 325,000 residents who lack drug coverage. Under the program, the state would negotiate with pharmaceutical companies to obtain rebates on prescription drugs equal to or greater than those set by federal law for the Medicaid program. The state would then pass the rebate on to pharmacies, which would give the discount to Maine Rx participants. In August, PhRMA filed a lawsuit against the state, alleging that the law was unconstitutional because it regulated out-of-state commerce and conflicted with federal Medicaid law (Kaiser Daily Health Policy Report, 5/7). In October, a federal judge in Portland, Maine, granted a preliminary injunction that barred the state from implementing Maine Rx; however, the 1st U.S. Circuit Court of Appeals lifted the injunction in May (Kaiser Daily Health Policy Report, 5/17). Maine Human Services Commissioner Kevin Concannon said of the latest decision: "It reaffirms the careful crafting and legitimacy of the Maine Rx law, including using the Medicaid program to create some leverage on the drug companies for lower prescription costs." PhRMA spokesperson Jeff Trewhitt said it was "too early" to comment on the industry's next move, but said an appeal to the U.S. Supreme Court "remains an option" (AP/Bangor Daily News, 6/18).