Maine Drug Discount Program Illegal, Court Rules

A federal appeals court Tuesday struck down a Maine state program that provides prescription drug discounts to more than 110,000 low- and moderate-income residents.

The Court of Appeals for the District of Columbia ruled that the Healthy Maine Prescriptions program, like a similar measure struck down in Vermont, illegally expanded the Medicaid program.

The program, which began in June 2001, forces drug makers to provide prescriptions at Medicaid prices to Maine residents who earn up to three times the federal poverty level.

The drug industry had challenged the program.

The ruling “is a victory for Medicaid patients in Maine and everywhere because their access to needed medicines won’t be limited by bureaucrats putting budget needs over patient care,” said Bruce Lott of the Pharmaceutical Research and Manufacturers of America.

About 111,000 people are enrolled in the program, and 225,000 are eligible. Members receive discounts of about 25% on name-brand medications, and more for generic drugs. The program saves participants an estimated $12 million a year.

The appeals court labeled the program illegal because its costs are borne entirely by drug makers and not the federal or state government.

After the Vermont program was struck down, Maine had agreed to pay about 2% of the drug costs. But the court said the late change was not specifically approved by U.S. Health and Human Services Secretary Tommy G. Thompson.

Kevin Concannon, state human services commissioner, said Thompson has supported the Maine program and will probably approve it in its revised form.

The Healthy Maine program is separate from the Maine Rx program, which seeks to lower prescription drug costs for about 325,000 residents by threatening price controls. Maine Rx is on hold while it is being appealed to the U.S. Supreme Court.