Latest / GNN Daily Breaking News / Pharma lobby sues Trump administration over Medicare drug price cuts

Transcript

Pharma lobby sues Trump administration over Medicare drug price cuts · GNN Daily Breaking News

• 0:00
  Speaker 1: The Pharmaceutical Research and Manufacturers of America filed a federal
• 0:04
  Speaker 1: lawsuit against the Trump administration, seeking to invalidate a major
• 0:08
  Speaker 1: executive initiative aimed at lowering Medicare prescription drug costs. Submitted
• 0:13
  Speaker 1: in the United States District Court for the District of Columbia,
• 0:17
  Speaker 1: the complaint targets the Global Benchmark for Efficient Drug Pricing Model.
• 0:22
  Speaker 1: an administrative framework developed by the Centers for Medicare and
• 0:26
  Speaker 1: Medicaid Services. The legal action names Health and Human Services
• 0:30
  Speaker 1: Secretary Robert F., Kennedy Jr. and Centers for Medicare and
• 0:34
  Speaker 1: Medicaid Services Administrator Mehmet Oz as defendants, alleging that federal
• 0:39
  Speaker 1: health officials overstepped statutory boundaries by implementing mandatory price caps
• 0:45
  Speaker 1: tied to international benchmarks without legislative authorization from Congress. The
• 0:50
  Speaker 1: disputed policy, designed as a mandatory demonstration model under Medicare
• 0:55
  Speaker 1: Part B, seeks to align domestic drug expenditures with rates
• 0:59
  Speaker 1: paid across 19 other developed nations through the implementation of
• 1:03
  Speaker 1: a revised rebate structure. Scheduled to take effect in January
• 1:07
  Speaker 1: 2027 and cover roughly one-quarter of original Medicare beneficiaries. The
• 1:13
  Speaker 1: regulation forces pharmaceutical manufacturers to provide significant financial rebates or
• 1:19
  Speaker 1: face heavy civil penalties if domestic prices exceed international averages.
• 1:25
  Speaker 1: Industry advocates argue that bypassing congressional approval to enforce foreign
• 1:29
  Speaker 1: price controls undermines federal statutory protections, restricts patient access to
• 1:35
  Speaker 1: critical therapies. and severely curtails financial incentives necessary for long-term
• 1:41
  Speaker 1: biopharmaceutical research and development. The judicial challenge underscores an escalating
• 1:46
  Speaker 1: dispute between executive leadership and healthcare industry stakeholders over federal
• 1:51
  Speaker 1: authority to regulate prescription costs. While administration representatives maintain that
• 1:57
  Speaker 1: administrative demonstration models fall within existing executive powers to control
• 2:03
  Speaker 1: government spending, Industry leaders contend that the executive branch is
• 2:07
  Speaker 1: attempting to bypass established legislative processes. As federal courts prepare
• 2:12
  Speaker 1: to review the complaint, the outcome of the lawsuit will
• 2:15
  Speaker 1: determine whether executive agencies can independently leverage international pricing indices
• 2:21
  Speaker 1: to restructure Medicare payment frameworks or whether such sweeping cost
• 2:25
  Speaker 1: reduction measures require explicit congressional approval.