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April 2, 2004
 United States Court
of Appeals for the
District of Columbia Circuit: Ruling No. 03-5117
The appellants, the
Pharmaceutical Research and Manufacturers of America (PhRMA) and
two non-profit organizations, the National Alliance for the
Mentally Ill of Michigan (NAMI) and the National Urban Indian
Coalition (NUIC) (referred to jointly as Non-Profits), appeal
the district courts summary judgment, rejecting their challenge
to the Michigan Best Practices Initiative
(Initiative), a low-cost state prescription drug coverage program for
beneficiaries of Medicaid and of two non-Medicaid state health
programs which was designed by the State of Michigan and
approved by the Secretary of the United States Department of
Health and Human Services (Secretary, HHS). Under the Initiative,
if a drug manufacturer does not sign each of two specified rebate
agreements with Michigan one to provide rebates for drugs the
state purchases for Medicaid recipients and the other to provide
identical rebates for drugs the state purchases for the two
non-Medicaid state health programs the drug will be covered
under the programs subject to prior authorization.
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