U.S. Supreme Court to Hear Maine Rx Case

January 21, 2003
The U. S. Supreme Court will hear oral arguments in the case involving Maine's proposed prescription drug discount program on Wednesday, January 22.

At issue is a law enacted in Maine, in May 2000, which would allow the state to negotiate lower drug prices for the 325,000 residents whose prescriptions are not covered by insurance as well as 200,000 people in Medicaid and in drug programs for the elderly. The Pharmaceutical Research and Manufacturers of America (PhRMA), the trade association for the drug industry, claims the law violates Medicaid law and the Constitution's interstate commerce clause.

PhRMA has fought the law in the courts since its passage. Having lost in lower courts, PhRMA appealed to the U. S. Supreme Court which agreed to hear the case. The Bush Administration has sided with PhRMA in legal briefs submitted to the Court. The Maine law was the first law ever enacted to put prices controls on prescriptions drugs, and, if upheld, will set the stage for other states to pass similar legislation.

The Alliance for Retired Americans and other consumer and advocacy groups will hold a news conference to discuss the implications of the landmark case at 9:30 a.m. Tuesday, January 21 in the Zenger Room at the National Press Club. Among the speakers at the news conference will be John Carr, President of the Maine Council of Senior Citizens, which was instrumental in the law's enactment.