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PhRMA v. HHS

Executive Summary

HHS lacks authority to approve Vermont Pharmacy Discount Program demonstration project extending Medicaid drug rebate structure to 70,000 beneficiaries without drug coverage, D.C. federal appeals court rules June 8. The opinion reverses Jan. 18 D.C. federal court decision denying the Pharmaceutical Research & Manufacturers of America's request for a preliminary injunction against the program (1"The Pink Sheet" Jan. 29, p. 7). "Because Congress imposed the rebate requirement in order to reduce the cost of the Medicaid program, and because no Medicaid funds are expended under the Vermont demonstration project and thus no Medicaid savings produced by the required rebates, we conclude that the department lacked the authority to approve the project," the appeals court says

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