This archive report was first published on 9 July 2019.
On July 9, 2019, a federal judge dealt a blow to the Trump administration's efforts to lower drug prices by blocking a rule requiring pharmaceutical companies to list their prices in TV ads.
The rule, which was set to take effect in August, was aimed at increasing transparency and putting pressure on drugmakers to reduce their prices. However, the pharmaceutical industry had strongly opposed the rule, arguing that it was an overreach of federal authority and a violation of the First Amendment.
Merck, Eli Lilly, and Amgen had sued to block the rule, and the judge's decision was a victory for the companies. In a statement, Lilly said it was pleased with the ruling, adding that it was committed to working with stakeholders to find better solutions for lowering out-of-pocket costs for Americans.
However, AARP, which represents older Americans, expressed disappointment in the judge's decision, saying it was a step backward in the battle against skyrocketing drug prices.
The Trump administration had argued that requiring drug companies to disclose their prices could shame them into lowering their prices. However, the judge's decision has raised questions about the effectiveness of this approach.
