Back in 1992, Congress created a program to require agencies within the Department of Health and Human Services to contract with drug manufacturers to secure price discounts for drugs provided to certain government supported hospitals and clinics. Under the law, the drug manufacturers were required by these contracts to sell drugs to those hospitals and clinics at no higher than “ceiling prices,” which were based on average prices offered for the same drugs.
However, thanks to a decision by the Obama Administration’s Department of Justice in siding with drug manufacturers, those price discounts are now in jeopardy.
The ability of government-supported hospitals, clinics and their patients to get the benefit of these price “discounts” depended on the government writing and enforcing the contracts. But over the years, The agencies became lax in their efforts, and investigations by various inspectors general found persistent over-pricing in setting the ceilings and/or enforcing them through sales to the health care providers.
This is a classic case where the beneficiaries of a regulatory program ought to have the ability to bring enforcement actions against the parties to make sure the benefits intended by Congress actually occur. Thus, a group of supported hospitals/clinics (e.g., Santa Clara County et al) sued the drug makers to compel them to stop overcharging and provide the discounts Congress intended.
http://my.firedoglake.com/scarecrow/2011/01/10/obama-justice-department-sides-with-drug-makers-to-stifle-suits-to-enforce-price-discounts/
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
