A federal judge on July 8 stopped a White House initiative that would have required pharma companies to disclose the sticker price of their drugs in TV ads.
The rule was blocked hours before it was set to take effect when U.S. District Judge Amit Mehta in Washington decided that HHS lacks the legal authority to make drug manufacturers include the cost of their drugs in TV commercials.
"To be clear, the court does not question HHS’s motives in adopting the … disclosure rule," U.S. District Judge Amit Mehta wrote. "Nor does it take any view on the wisdom of requiring drug companies to disclose prices. That policy very well could be an effective tool in halting the rising cost of prescription drugs. But no matter how vexing the problem of spiraling drug costs may be, HHS cannot do more than what Congress has authorized."
"The responsibility rests with Congress to act in the first instance," Mehta wrote.
HHS spokeswoman Caitlin Oakley said the administration was disappointed by the ruling and "will be working with the Department of Justice on next steps related to the litigation." The administration could appeal the ruling, and it could also ask Congress to specifically authorize requiring drugmakers to disclose their prices. The Senate and the House are working on a package of bills that aim to reduce health care costs for insured patients, and drug prices are one of lawmakers' biggest targets.
The lawsuit was brought by three major manufacturers: Merck, Eli Lilly, and Amgen. HHS Secretary Alex Azar was once a top executive of Indianapolis-based Eli Lilly.
AARP Vice President Nancy LeaMond also called the ruling a disappointment. "Today's ruling is a step backward in the battle against skyrocketing drug prices," she said in a statement. "Americans should be trusted to evaluate drug price information and discuss any concerns with their health care providers."