In a major legal setback for President Donald Trump on a high-profile consumer issue, a federal appeals court has ruled that his administration lacks the legal authority to force drug companies to disclose prices in their TV ads. Where most plans to overhaul the cost of drugs are complex, mandating that companies disclose prices is something any consumer can relate to. Separate from the court case, legislation that would lower drug costs for Medicare beneficiaries with high bills is stuck in Congress. There's also a separate bill that would mandate drug companies to disclose their prices in consumer advertising. On TV ads, the unanimous decision by a panel of the U.S. Court of Appeals for the District of Columbia Circuit did not address a core argument of the pharmaceutical industry, that forcing companies to disclose their prices in advertising violates their free speech rights. Instead the three-judge panel ruled that the Department of Health and Human Services overstepped its legal authority by requiring disclosure under the umbrella of its stewardship of Medicare and Medicaid. When the disclosure rule was announced last year, administration officials were confident that it would be in effect by now. Drug pricing details were expected to appear in text toward the end of commercials.
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