WASHINGTON — The U.S. Supreme Court gave a boost Monday to the campaign to give uninsured Americans low-cost prescription drugs, reviving a novel Maine law that forces drug makers to discount their prices for all consumers if they want to sell to the huge Medicaid program that serves the poor.
The 6-3 ruling was a defeat for the drug industry, which had won a lower court order that blocked the law, the first of its kind in the nation, from taking effect.
The decision, while not the final word, clears the way for other states to pass similar drug discount laws. At least 27 states, including California, have considered similar measures in recent years, but only two -- Hawaii and Illinois --have passed them.
Most have awaited the outcome of the legal and regulatory battle in Washington. The Bush administration could veto the states' drive for drug discounts, since the Medicaid program is a joint federal-state venture. But siding with the pharmaceutical industry over the needs of senior citizens would be politically risky.
Despite the uncertainty ahead, champions of discount drugs hailed Monday's decision as a big step in the right direction.
"This decision is a victory for consumers, who deserve access to more affordable prescription drugs," said Sen. Olympia J. Snowe (R-Maine), an advocate of federal measures to bring about lower drug costs.
More than 70 million Americans -- about 1 in 4 -- lack insurance coverage for prescription drugs. About 18 million of them are senior citizens.
At the pharmacy counter, these consumers pay the highest prices for drugs. Big purchasers, including the Department of Veterans Affairs, the Medicaid program for the poor and private managed-care networks, can negotiate price discounts that lower these prices, sometimes by half.
Three years ago, Maine's lawmakers moved to force drug makers to negotiate similar discounts for all its consumers. If the manufacturers refused, their drugs could be excluded from the state's Medicaid market.
When the drive to deal with drug costs stalled in Congress two years ago, health-care reformers focused their attention on the states, and in particular the so-called Maine Rx law.
For cash-strapped states, Maine's approach had the virtue of being a no-cost reform.
"This is unique among the health-care reforms. It doesn't cost the state a dime," said Bernie Horn of the Center for Policy Alternatives, which tracks state reform measures.
