North Dakota Faces Lawsuit Over Controversial Drug Pricing Law
BISMARCK — A new law in North Dakota requiring drug manufacturers to sell medications at discounts is facing legal challenges as the pharmaceutical company AbbVie has filed a suit in federal court, claiming the legislation violates constitutional rights.
Signed by Governor Kelly Armstrong in April, House Bill 1473 targets companies participating in the federal 340B program, designed to enhance healthcare access in low-income communities by mandating discounted drug prices for qualifying healthcare facilities. Proponents argue this law is vital for rural healthcare in North Dakota, allowing hospitals to better serve patients.
“This is a lifeblood to rural facilities across the state,” stated Rep. Jon Nelson, a Republican from Rugby and the bill’s sponsor. However, AbbVie’s lawsuit contends that the law hinders manufacturers’ ability to set necessary conditions to access their discounted drugs, undermining the program’s intent.
Under the new law, drug companies face penalties for policies that limit pharmacies from dispensing 340B discounted medications, which AbbVie claims could inadvertently diminish access for low-income patients. The company alleges the law conflicts with federal regulations governing the 340B program, claiming it usurps powers reserved for Congress and violates the Supremacy Clause of the U.S. Constitution.
AbbVie also argues that the law infringes upon its Fifth Amendment rights by forcing it to sell its property to private parties without due process. Penalties for non-compliance could include jail time and fines.
As legal battles unfold, the conflict highlights the ongoing debate over drug pricing, access to medications, and the role of state legislation in shaping federal health initiatives.
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