U.S. Court Sides With California Counties Over Rx Price Data
On Wednesday, the Ninth Circuit Court of Appeals sided in favor of Santa Clara and Santa Cruz counties in a ruling that is expected to curb drug prices at public hospitals and community health centers nationwide, the San Jose Mercury News reports.
The two counties sued more than 10 major pharmaceutical companies after a 2005 inspector general's report suggested that insufficient government oversight allowed the firms to overcharge thousands of the nation's safety-net clinics by as much as $41 million per month.
The suit contends that the drug companies violated a federal contract and a congressional mandate by putting inappropriately high prices on the drugs.
The court decision will require the firms to share the data they use to determine medication prices.County officials say the decision likely will compel the drug companies to cede millions of dollars in refunds to the counties and other jurisdictions (Kaplan, San Jose Mercury News, 12/10). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.