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Michigan Judge's Injunction Blocks Law Seeking to Curb Prescription-Drug Costs
In a victory for the pharmaceuticals industry, a Michigan judge issued a preliminary injunction Monday to block a state law that seeks price concessions from drug companies in exchange for inclusion on a list of preferred drugs. The lawsuit was filed by the Pharmaceutical Research and Manufacturers of America, a Washington trade group. The group, known as PhRMA, opposes the growing number of state efforts to restrict access to prescription drugs as a way to control rising health-care costs. Under the proposed Michigan program, doctors must call to seek permission to prescribe drugs that aren't on the state's preferred drug list. The preferred-drug law covers 1.6 million people in Medicaid and other state-funded health programs. In his order granting the injunction, Ingham County Circuit Court Judge Lawrence M. Glazer ruled that the unorthodox manner of implementing the Michigan law -- several prominent legislators were given what amounted to a veto over the policy after Gov. John Engler signed the law -- violated the state constitution. The judge also was persuaded by arguments from several groups representing the mentally ill that restricting access to certain drugs could harm patients. The judge allowed those groups to join the lawsuit. The Michigan Department of Community Health has filed an emergency appeal to the state appellate court and hopes to still be able to implement the preferred list on Jan. 14, as planned. The state's preferred-drug list was developed by a committee of physicians and pharmacists who met last fall to select at least two "best-in-class" drugs in 40 different categories. These drugs would go on the preferred list. All other drugs would make the preferred list only if the makers cut their prices to equal the lowest-priced "best" drug. Several companies, including Pfizer Inc. and Merck & Co. refused to offer any price breaks. The Michigan decision comes just days after a federal judge let stand a similar program implemented last year in Florida. Already, other states seeking budget savings are hoping to copy Florida. This week Colorado lawmakers plan to introduce a bill, modeled on Florida's program, to seek additional rebates for Medicaid drugs. The bill's sponsor, Sen. Penfield Tate, says he was encouraged by the Florida federal-court ruling. PhRMA has appealed the Florida case to the Eleventh U.S. Circuit Court of Appeals in Atlanta. PhRMA was pleased with the Michigan ruling. Jan Faiks, assistant general counsel for PhRMA, says the preferred-drug list is harmful because it interferes with doctors' freedom to prescribe what they feel is the most appropriate drug. "The state imposed itself between the patient and the doctor," she says. "We think that is of tremendous potential harm to the doctor-patient relationship and ultimately to the patient's health." Mark Reinstein, vice president of the Mental Health Association in Michigan, one of the groups which joined the lawsuit, says the preferred list "was set up to deprive them [persons with mental illness] of access to certain drugs and that would hurt too many people." Geralyn Lasher, a spokeswoman for the Michigan Department of Community Health, says if doctors want to prescribe a certain drug, the state law doesn't stop them. It just requires an extra effort. "If a drug is medically necessary, that is the drug a recipient will get," Ms. Lasher says. Michigan expected to save $42 million this fiscal year from the program. |
