Court strikes down Trump rule that drugmakers disclose price

 In a major legal setback for President Donald Trump on a high-profile consumer issue, a federal appeals court has ruled that his administration lacks legal authority to force drug companies to disclose prices in ir TV ads.

ruling denies Trump an easy-to-understand win on a major reelection priority for White House, bringing down cost of prescription medicines. Where most plans to overhaul cost of drugs are complex, mandating that companies disclose prices is something any consumer can relate to.

Separate from court case, legislation that would lower drug costs for Medicare beneficiaries with high bills is stuck in Congress. It's unclear that Trump can get it moving, since it would require some hard compromises for both Republicans and Democrats. re's also a separate bill that would require drug companies to disclose ir prices in consumer advertising.

Trump, however, is t empty-handed. His administration recently brokered an agreement with drug companies and insurers that would give Medicare recipients taking insulin ability to limit ir copays to $35 a month, starting next year.

On TV ads, unanimous decision by a panel of U.S. Court of Appeals for District of Columbia Circuit did t address a core argument of pharmaceutical industry, that forcing companies to disclose ir prices in advertising violates ir free speech rights. Instead three-judge panel ruled that Department of Health and Human Services overstepped its legal authority by requiring disclosure under umbrella of its stewardship of Medicare and Medicaid. panel issued its decision Tuesday.

In a scathing rebuke to administration, Judge Patricia Millett wrote for court that HHS “acted unreasonably” in asserting it had authority to impose "a sweeping disclosure requirement that is largely untered to actual administration of Medicare or Medicaid programs.

“Because re is reasoned statutory basis for its far-flung reach and misaligned obligations, disclosure rule is invalid and is hereby set aside,” judge added.

Responding to ruling, HHS spokesman Michael Caputo tweeted, “If drug companies are embarrassed by ir prices or afraid that prices will scare patients away, y should lower m.”

When disclosure rule was anunced last year, administration officials were confident that it would be in effect by w.

Trump tweeted at time that “Historic transparency for American patients is here.”

Drug pricing details were expected to appear in text toward end of commercials, when potential side effects are disclosed.

government hoped that patients armed with prices would start discussing affordability with ir doctors, and gradually that would pressure drugmakers to keep costs of brand-name drugs in check. AARP was among organizations supporting disclosure.

idea was part of a multilevel blueprint Trump anunced in 2018 to try to lower prescription drug costs.

Democrats have taken a more ambitious approach, with House passing Speaker Nancy Pelosi's bill authorizing Medicare to negotiate prices directly with companies. That's a nstarter for Republicans, though Trump once supported it. w Democratic presidential candidate Joe Biden is backing Medicare negotiations.