MINNEAPOLIS (Legal Newsline) – A group that represents prescription drug makers is suing over a new law in Minnesota that provides free insulin for residents.
The Pharmaceutical Research and Manufacturers of America says it is unconstitutional to take its members’ private property to achieve a public policy goal and has filed suit in Minnesota federal court challenging the Alec Smith Insulin Affordability Act.
The complaint notes the high out-of-pocket cost of insulin for users who lack health insurance or whose insurers require large payments on their parts.
“Minnesota could have taken various lawful steps to address this concern,” the complaint says.
“What Minnesota chose to do, however, is to order pharmaceutical manufacturers to give insulin to state residents, on the state’s prescribed terms, at no charge to the recipients and without compensating the manufacturers in any way.”
The complaint cites the Takings Clause of the Fifth Amendment, which it says bans Minnesota’s “draconian” law.
Manufacturers are doing their best to make insulin affordable and available, the complaint says. But the new law, which was signed April 15, goes too far, PhRMA says. Minnesota residents with a family income of 400% or less of the federal property level who are not eligible for or enrolled in other programs are entitled to free insulin.
Individuals with coverage under Medicare Part D can also receive free insulin if they have spent more than $1,000 on prescription drugs in the calendar year. It is up to the manufacturer to investigate whether applicants meet the various criteria.
“The requirement that PhRMA’s members give away their personal property for free constitutes a per se taking of private property,” the complaint says.