Pharmaceutical Research and Manufacturers of America v. Peter E. Walsh, Acting Commissioner, Maine Department of Human Services, et al. (538 U.S. 644)

U.S. Supreme Court · decided May 19, 2003 · Supreme Court Database (Spaeth)

Citation
538 U.S. 644 · 123 S. Ct. 1855
Decided
May 19, 2003
Term
October Term 2002
Vote
6–3
Majority author
Justice Stevens
Issue area
Economic Activity
Disposition
Affirmed
Outcome
Petitioning party lost
Ideological direction
Liberal

Opinion excerpt

Justice Stevens announced the judgment of the Court and delivered the opinion of the Court with respect to Parts I, II, III, and VI, an opinion with respect to Parts IV and VII, in which Justice Souter, Justice Ginsburg, and Justice Breyer join, and an opinion with respect to Part V, in which Justice Souter and Justice Ginsburg join. In response to increasing Medicaid expenditures for prescription drugs, Congress enacted a cost-saving measure in 1990 that requires drug companies to pay rebates to States on their Medicaid purchases. Over the last several years, state legislatures have enacted supplemental rebate programs to achieve additional cost savings on Medicaid purchases as well as for purchases made by other needy citizens. The “Maine Rx” program, enacted in 2000, is primarily intended to provide discounted prescription drugs to Maine’s uninsured citizens but its coverage is open to all residents of the State. Under the program, Maine will attempt to negotiate rebates with drug manufacturers to fund the reduced price for drugs offered to Maine Rx participants. If a drug company does not enter into a rebate agreement, its Medicaid sales will be subjected to a “prior authorization” procedure. In this case, an association of nonresident drug manufacturers has challenged the constitutionality of the Maine Rx Program, claiming that the program is pre-empted by the federal…

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