Trump administration appeals drug price disclosure ruling

Trump administration appeals drug price disclosure ruling
© iStock

The Trump administration announced Wednesday that it is appealing a federal judge’s ruling that blocked the implementation of a policy requiring prescription drug manufacturers to disclose their list prices in TV ads.

The appeal, announced in a court filing, gives President TrumpDonald John TrumpLawmakers release defense bill with parental leave-for-Space-Force deal House Democrats expected to unveil articles of impeachment Tuesday Houston police chief excoriates McConnell, Cornyn and Cruz on gun violence MORE and the Department of Health and Human Services (HHS) another chance to resurrect what was one of the administration’s key attempts at lowering prescription drug prices

Under the rule, which was announced by HHS Secretary Alex Azar in May, drug manufacturers would have to state the list price of a 30-day supply of any drug that is covered through Medicare and Medicaid and costs at least $35 a month.

ADVERTISEMENT

Drug companies fought the rule from the start, and three — Amgen, Merck and Eli Lilly — filed a lawsuit, joined by the Association of National Advertisers. 

A federal judge in July sided with the drug companies and blocked the rule from being implemented, just one day before it was set to take effect. The judge ruled that the administration does not have the authority to compel drug companies to disclose prices.

Drug companies argued the rule would confuse consumers because a drug’s list price — which doesn't reflect the discounts negotiated with insurers or through patient assistance programs — is often higher than what the patient actually pays.