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June 15, 2020

Around the nation: States file new lawsuit accusing drugmakers of fixing generic drug prices

Daily Briefing

    A group of 46 states and Washington, D.C., in the lawsuit accuse 26 drug companies of conspiring to fix generic drug prices and reduce competition, in today's bite-sized hospital and health industry news from Connecticut, Maryland, and Pennsylvania.

    • Connecticut: The attorneys general (AGs) of 46 states and the District of Columbia on Wednesday filed a lawsuit against 26 drug manufacturers claiming that the companies conspired to fix the market for more than 80 medications between 2009 and 2016. The AGs in the suit argued that the companies conspired on a scheme that drove up generic drug prices and reduced competition. Drugmakers named in the lawsuit include Mylan, Novartis' Sandoz unit, Pfizer, Teva Pharmaceuticals' Actavis unit, and others. Spokespeople from Novartis and Mylan separately have said they've found no evidence supporting allegations of such a conspiracy, and a spokesperson for Pfizer said the company doesn't believe it engaged in misconduct. Teva did not immediately respond to Reuters' request for comment on the lawsuit (Bartz/Stempel, Reuters, 6/10; Benner et al., New York Times, 5/15; Owens, "Vitals," Axios, 6/11).
    • Maryland: CMS on Thursday announced it is delaying by three months the start of a component of its Primary Care First alternative payment model that was designed for seriously ill populations. CMS said the model's option for general practices will still begin on Jan. 1, 2021, but the component focused on seriously ill populations will not start until April 1, 2021. CMS said this fall it will notify providers who applied to participate in model's component focused on seriously ill populations whether they were accepted (Brady, Modern Healthcare, 6/11).
    • Pennsylvania: Former Vice President Joe Biden, who is the Democratic Party's presumptive nominee for the 2020 presidential race, during a visit at a community center in West Philadelphia on Thursday unveiled a plan aimed at restarting America's economy while also protecting public health amid the country's new coronavirus epidemic. The plan calls for federal funding to cover testing for all workers, guaranteeing paid sick leave for workers affected by the virus, and a federally coordinated contact tracing effort, among other proposals (Gringlas, NPR, 6/11; Pager, Bloomberg, 6/11).

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