Sen. Bailey releases statement after New Jersey pharmaceutical company challenges new cost-saving law

AUGUSTA — Last week, Novartis, a New Jersey pharmaceutical company, filed a lawsuit in federal court challenging a new law enacted by the Legislature earlier this year. The law, originally introduced as LD 1018 and enacted as part of the biennial budget in June, seeks to protect the federal 340B Drug Pricing Program in Maine. 

In response to the lawsuit, the law’s sponsor, Sen. Donna Bailey, D-Saco, released a statement.

“I introduced this law because all Mainers — especially low-income patients in rural and underserved areas — deserve access to quality, affordable health care,” said Sen. Bailey. “Now, Big Pharma is trying to undo our work and increase their own profits at the expense of health care providers and the patients who rely on these essential cost-saving programs. I am hopeful and confident that our efforts to lower the cost of care for Maine people will be upheld.”

340B helps safety net providers — such as Federally Qualified Health Centers (FQHCs) and non-profit hospitals — purchase prescription drugs at a discounted price, offering cost savings that allow them to provide essential health care services at a lower cost to patients.

The new law, set to take effect on September 24, prohibits the pharmaceutical industry from forcing hospitals and FQHCs to enter into partnerships that do not offer the 340B program.

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