North Dakota Faces Lawsuit Over New Drug Pricing Law
By Mary Steurer, North Dakota Monitor
North Dakota is embroiled in a legal battle following the implementation of House Bill 1473, which mandates drug manufacturers to sell medications at discounted rates. Signed into law by Governor Kelly Armstrong in April, the legislation primarily impacts companies involved in the federal 340B program, established in 1992 to enhance healthcare access for low-income communities.
A drug manufacturer has filed a lawsuit in federal court, asserting that the law is unconstitutional and could jeopardize their profitability. The lawsuit challenges the state’s requirements for increased discounting on pharmaceuticals, claiming it imposes undue financial burdens on the company. However, state officials assert that the law aims to improve public health access without infringing on constitutional rights.
Under the 340B program, pharmaceutical companies are required to provide discounted medications to eligible hospitals and healthcare facilities in order to participate in Medicare and Medicaid. As the legal proceedings unfold, the state remains firm in its stance that the law is both lawful and necessary for improving healthcare accessibility in North Dakota.
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