Press Release

PhRMA Applauds Court’s Decision to Strike Down Patient Assistance Penalty

WASHINGTON, D.C. (May 17, 2022) – The Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Stephen J. Ubl released the following statement on the U.S. District Court for the District of Columbia issued a decision vacating the patient assistance penalty, a provision of a Medicaid rule finalized in 2020, which would have made it harder for biopharmaceutical manufacturers to offer cost-sharing assistance to commercially insured patients:

“Today’s decision to vacate the patient assistance penalty – a provision of a Medicaid rule finalized in 2020 – is a win for patients. Manufacturers provide patient assistance to do just that – assist patients and address gaps in insurance – but instead insurers are siphoning that money away for themselves. We will continue to work with policymakers on solutions that make medicines more affordable and lower what Americans pay out of pocket.”


About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier and more productive lives. Since 2000, PhRMA member companies have invested more than $1 trillion in the search for new treatments and cures, including $91.1 billion in 2020 alone.

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