Congressional Digest

Supreme Court Debates October 2003 No. 7 Vol. 6
Pharmaceutical Research and Manufacturers of America (PhRMA)

Affordable Prescription Drugs

Maine's Attempt to Control Medication Prices for the Uninsured

Pharmaceutical Research and Manufacturers of America (PhRMA)

Petitioner

Daniel M. Price, Counsel of RecordWhen the State of Maine enacted a program that required pharmaceutical manufacturers to either pay a rebate to lower drug prices in the State or face prior authorization requirements under Medicaid rules, PhRMA, a consortium of drug manufacturers, filed suit. The organization alleged that Maine was abusing Medicaid rules to accomplish a goal Congress never envisioned and that less-effective medical treatment for Medicaid patients would result. In addition, it argued that Maine was violating the Commerce Clause of the Constitution by regulating out-of-State businesses. On October 26, 2000, a district court ruled in PhRMA’s favor…

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