Pharmaceutical Lobby Sues Over Trump Admin Drug Pricing Program
Summary
The Pharmaceutical Research and Manufacturers of America (PhRMA) filed a lawsuit against the federal government on October 7, challenging a new most-favored-nation pricing program for Medicare introduced by the Trump administration. PhRMA argues that the program unlawfully imposes foreign price controls and exceeds the authority of the Center for Medicare & Medicaid Services (CMS). This legal action mirrors a previous suit filed during Trump's first term over an earlier version of the same policy, which resulted in a temporary restraining order. Under the 2025 announcement, the new pricing model, set to take effect on January 1, 2027, bases Medicare payments on average sales prices from various countries, a move that PhRMA claims threatens drug accessibility and future medical innovation.