Washington Editor

WASHINGTON - The U.S. Supreme Court on Friday said it would review the case filed by the Washington-based Pharmaceutical Research and Manufacturers of America against the state of Maine.

PhRMA is seeking a preliminary injunction against implementation of Maine Rx, a prescription drug program designed to serve the state's 325,000 uninsured residents.

PhRMA contends that Maine Rx interferes with the nationwide federal Medicaid program and violates the Commerce Clause of the Constitution, which prohibits states from regulating transactions outside their borders. (See BioWorld Today, Oct. 30, 2000.)

A court-ordered "stay of implementation" resulting from the lawsuit has prevented Maine Rx from being implemented.

"The Maine Rx program would have dire consequences for the state's most vulnerable citizens," Alan Holmer, PhRMA's president, said in a prepared statement. "The program would have limited Medicaid patients' access to the newest and most effective medications. Doctors, not state bureaucrats, should decide which medicines are best for the patients."

Maine Rx consists of at least two elements that bother PhRMA. In the first place, it includes a prior authorization element that would require physicians to gain state approval before prescribing a drug. Also, the program gives the state attorney general the right to bring action against a prescription drug manufacturer for charging an unfit or undue price.

"A single state cannot judge for itself that a particular price is too high," Jeff Trewhitt, PhRMA's spokesman, told BioWorld Today. "And particularly if this is a competitive price that is being used in other states as well."

Trewhitt said it's unclear when the Supreme Court will begin the review of the case.

Prescription Drug Plan Approved In House

In a 221-to-208 vote, the House of Representatives early Friday approved a Republican-designed Medicare prescription drug plan that would provide seniors with a permanent prescription drug plan at a low and affordable price, according to a prepared statement released by Billy Tauzin, House Energy and Commerce Committee chairman.

Sharon Cohen, vice president for government relations at the Washington-based Biotechnology Industry Organization (BIO), released a prepared statement saying, "BIO has developed six core principles that are crucial to ensuring beneficiary access to breakthrough medications and to encouraging the continuation of research that makes the products possible. We support market-based solutions that provide a basic level of coverage for all beneficiaries, plus extra help for those most in need, either because of low income or catastrophic medical needs.

"We are pleased that in the final version of this bill the stop-loss ceiling - the point at which 100 percent coverage would kick in to cover seniors with catastrophic prescription costs - was lowered from $4,500 to $3,700 annually. The legislation does not encompass all of the industry's Medicare principles, but would meet most of our objectives in developing a plan to close this gap in our nation's health-care system."

The voluntary program guarantees seniors the ability to choose among drug plans at a cost of $33 a month. Also, it includes a standard benefit that begins with a $250 deductible and pays 80 percent of spending up to the first $1,000 and 50 percent up to $2,000. Medicare beneficiaries who meet the low-income criteria (44 percent of beneficiaries nationally) would pay less than $5 per prescription.