NU Online News Service, May 20, 2003, 5:52 p.m. EDT – The U.S. Supreme Court has issued a 6-3 ruling that lets Maine shut drug makers out of its Medicaid market if they fail to help it subsidize drug purchases by poor, uninsured state residents.
The Pharmaceutical Research and Manufacturers of America, Washington, originally filed the case, Pharmaceutical Research and Manufacturers of America vs. Walsh, et al., in a federal district court.
The drug manufacturers argued that federal Medicaid statutes forbid states from imposing significant restrictions on Medicaid recipients' access to drugs "without serving any valid Medicaid interest."
The drug manufacturers also argued that Maine was illegally trying to regulate the operations of out-of-state companies.
The manufacturers won a preliminary injunction that blocked Maine from making them provide rebates for uninsured state residents who buy their drugs.
