Maine wins court case on prescription drug prices.

• Position: Update - Brief Article

It was another step for those states trying to provide affordable medicine to their poorer citizens when District Court Judge Ricardo Urbina rejected a pharmaceutical industry claim that the Healthy Maine Prescription Program illegally expanded Medicaid. His Feb. 25 decision opens the door to other states that want to try similar programs.

The Maine program, enacted in 2001, provides prescription drugs to about 110,000 residents. Most can buy at the reduced Medicaid prices, while the state subsidizes about 40,000 who have lower incomes.

The Pharmaceutical Research and Manufacturers of America (PhRMA) sued the federal Department of Health and Human Services to overturn a waiver it issued Maine in January 2001 to allow discounts to people otherwise ineligible for Medicaid. Under the program, singles making up to $25,776 and couples earning up to $34,836 can apply for the discounted prescription drugs.

Discounts are available through state funding, traditional Medicaid discounts and rebates from pharmaceutical companies. The state uses the rebates to reimburse pharmacies for selling drugs at Medicaid prices.

PhRMA contends the Healthy...