Pentagon Can Unilaterally Cap Tricare Drug Rates: DC Circ.

By Daniel Wilson (January 4, 2013, 4:59 PM EST) -- The D.C. Circuit on Friday ruled that the U.S. Department of Defense can unilaterally and retroactively apply pricing caps on retail drug prescriptions purchased by Tricare health program participants, despite claims by drugmakers that the agency had violated its congressionally mandated authority.

The three-judge panel upheld U.S. District Judge John D. Bates' ruling that the Pentagon was within its rights under section 703 of the National Defense Authorization Act for Fiscal Year 2008 to unilaterally cap prescriptions purchased by Tricare participants at retail pharmacies at the same price as drugs it procures directly. The DOD also can pursue hundreds of millions of...

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