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Constitutional Law Keyed to Choper
Pharmaceutical Research and Manufacturers of America v. Walsh
Citation:
538 U.S. 644 (2003)Facts
In 2000, Maine enacted the Maine Rx Program to make prescription drugs more affordable for all Maine residents. Under the program, Maine would negotiate rebate agreements with drug manufacturers similar to those required under the federal Medicaid program. The rebates would fund discounts for Maine residents purchasing drugs at retail pharmacies. If a manufacturer refused to enter into a rebate agreement, its drugs would be subject to prior authorization requirements in Maine’s Medicaid program. Prior authorization requires physicians to obtain approval from the state before prescribing certain drugs to Medicaid patients. The Pharmaceutical Research and Manufacturers of America (PhRMA) filed suit before the program took effect, claiming it was preempted by federal Medicaid law and violated the dormant Commerce Clause. PhRMA argued that the program improperly used the Medicaid program to leverage concessions from manufacturers for non-Medicaid purposes. Maine argued that the program served Medicaid-related purposes by providing benefits to needy persons and potentially reducing Medicaid costs.
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