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Supremes Mull Maine Discount Prescription Program

By Tony Mauro
October 07, 2003

The Supreme Court appears torn over what to do with Maine's discount prescription drug program, which has been challenged by the pharmaceutical industry and the Bush Administration as a violation of the federal Medicaid law.

At issue in Pharmaceutical Research and Manufacturers of America v. Concannon, 01-188, is a Maine program enacted in 2000 that encourages pharmaceutical companies to discount their drugs for all Maine consumers through a rebate program. Physicians serving Maine Medicaid recipients who need drugs made by companies that do not cooperate would have to go through a preauthorization process with the state.

The justices heard Carter Phillips of Sidley Austin Brown & Wood, representing the pharmacy group, attack Maine for turning Medicaid recipients into 'pawns' and 'hostages' for a program that is aimed at benefiting non-Medicaid recipients, including the 'Stephen Kings of the world.' He was referring to the best-selling author of horror books, who lives in Maine. Justice Antonin Scalia also described the program as a 'shakedown' of drug companies.

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