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PhRMA’s Lawsuit Against Medicare Trips Over ‘Administrative Remedy’ Standard; Will Others?

 
• By Cathy Kelly

West Texas District Court dismisses lawsuit against Medicare price negotiation program on jurisdictional grounds without considering the merits of the case. PhRMA is weighing next steps.

Ruling Is First To Dismiss One Of The Price Negotiation Lawsuits • Source: Shutterstock

The lawsuit filed by the Pharmaceutical Research and Manufacturers of America and co-plaintiffs against the federal government over the Medicare price negotiation program has run aground over a jurisdictional issue that is likely to come up again in similar industry lawsuits.

The issue has to do with a legal precedent regarding jurisdiction that states parties challenging a Medicare law or regulation may bring a claim to court that “arises under the Medicare act” only after they first pursue the claim directly with the agency in an administrative forum

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