The drug industry’s top lobby, PhRMA, has sued to block a new Medicare drug pricing rule.

The October 7 suit says the Centers for Medicare & Medicaid Services exceeded its authority.

The rule, called the GLOBE model, triggers rebates when Medicare drug prices top those in other rich countries.

It is modeled on the “most favored nation” pricing principle.

The suit names CMS, its innovation centre and HHS, along with Mehmet Oz, Abe Sutton and RFK Jr.

PhRMA argues the approach would cost hundreds of new treatments over the next decade.

The rule targets Medicare Part B hospital drugs and is expected to take effect January 1.

Read the full article for more details on the Medicare drug pricing lawsuit.