Federal judge puts prescription drug law on hold

PORTLAND, Maine - A federal judge blocked Maine's pioneering law aimed at cutting the cost of prescriptions with the threat of price controls Thursday, saying it would likely be tossed out as unconstitutional.

The preliminary injunction granted by Judge D. Brock Hornby prevents the state from enforcing the law pending the outcome of a lawsuit filed by the Pharmaceutical Research and Manufacturers of America, which represents about 100 drug companies.

PhRMA contends the Maine Rx Program is unconstitutional because it would regulate transactions outside the state and because it conflicts with federal law.

Hornby said PhRMA's chances of winning the federal lawsuit it filed in August to scrap the first law of its kind are ''overwhelming.''

Gov. Angus King said he interpreted the ruling to say Maine had focused on the ''right target'' but had chosen the ''wrong method.''

The law, which was to take effect Jan. 1, would cover anyone without insurance coverage for prescription drugs, an estimated 325,000 residents. The state would seek rebates from drug manufacturers and labelers that participate in publicly supported prescription programs, including Medicaid.

Price controls could be imposed in three years unless there are significant price reductions. The state also could make it more difficult for certain products to be offered through Medicaid by requiring doctors to seek state approval and justify prescription choices.

Some drug companies decided to stop shipping products directly to Maine. Industry lawyers said the state was interfering with federal law by requiring drug companies to participate in both Medicaid and the state program.

Hornby found merit in the claim, saying states cannot legislate outside their boundaries, whatever their intent to help the uninsured facing ''astronomical prescription drug prices.''

Maine Human Services Commissioner Kevin Concannon said the ruling would be reviewed but the program was not being dropped.

''The good news is the program isn't enjoined per se,'' he said. ''(But) there's no question that it is a setback.''

He said the state now cannot force drug companies to participate in the program, but Maine can move forward with 50 companies that already agreed to participate. Another 10 companies are negotiation with the state.

Alan F. Holmer, president of PhRMA, said he was pleased that the court ''recognized the need to prevent the state from moving ahead with its planned implementation of an unconstitutional price-control statute.''

Spokesman Jeff Trewhitt said PhRMA wants to expand access to prescription drugs, but through market-based approaches like a purchasing pool being organized by New Hampshire, Vermont and Maine.

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On the Net:

PhRMA: http://www.phrma.org

Department of Human Services: http://janus.state.me.us/dhs/welcome.htm