John Linehan Quoted in “Trump’s Drug Rebate Ban Faces Fraught Legal Path”


John S. Linehan, Associate in the Health Care & Life Sciences practice, in the firm’s Baltimore and Washington, DC, offices, was quoted in Law360, in “Trump’s Drug Rebate Ban Faces Fraught Legal Path,” by Mike LaSusa. (Read the full version – subscription required.)

Following is an excerpt:

One of the Trump administration’s boldest moves to ease drug prices — a ban on billions of dollars in rebates negotiated by middlemen for health insurers — will need to traverse a legal minefield to become reality, experts say.

The recent proposal would use threats of prison time and massive fines under the Anti-Kickback Statute to eliminate rebates negotiated in Medicare and Medicaid by pharmacy benefit managers, or PBMs. Rebates in those two programs — long shielded by an Anti-Kickback Statute safe harbor — total tens of billions of dollars annually. …

The contours of any litigation remain to be seen. But attorneys see abundant fodder for a lawsuit, citing the voluminous and highly technical provisions of the Anti-Kickback Statute, the Administrative Procedure Act and Medicare Part D.

Jack Linehan, an Epstein Becker Green member, told Law360 that there are “a remarkable number of legal questions” raised by the proposal.