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AMERICAN MEDICAL ASS'N v. MATHEWS

No. 75 C 2512.

429 F.Supp. 1179 (1977)

AMERICAN MEDICAL ASSOCIATION et al., Plaintiffs, Pharmaceutical Manufacturers Association, Plaintiff-Intervenor, v. F. David MATHEWS, Secretary of Health, Education and Welfare, Defendant, Commonwealth of Massachusetts and State of Connecticut, Defendants-Intervenors.

United States District Court, N. D. Illinois, E. D.

March 7, 1977.

Attorney(s) appearing for the Case

Newton N. Minow, Jack R. Bierig, Sidley & Austin, Bernard D. Hirsh, B. J. Anderson, Chicago, Ill., for plaintiffs.

Jenner & Block, Joan M. Hall, Chicago, Ill., for plaintiff-intervenor.

Earl J. Silbert, U. S. Atty., Washington, D. C., Samuel K. Skinner, U. S. Atty., Frederick H. Branding, Asst. U. S. Atty., Chicago, Ill., Jeffrey B. Springer, Deputy Chief Counsel for Regulations and Hearings, Michael P. Peskoe, Associate Chief Counsel for Enforcement Food and Drug Administration Department of Health, Education and Welfare, Rockville, Md., Eugene R. Sullivan, Atty., Civ. Div., Dept. of Justice, Washington, D. C., for defendant.

OPINION

MARSHALL, District Judge.

This action challenges the validity of the Maximum Allowable Cost (MAC) regulations of the Department of Health, Education and Welfare (HEW) which establish a mechanism for limiting reimbursement or payment for multiple-source prescription drugs under federally subsidized health care programs (mainly Medicare and Medicaid). The case raises important issues concerning the authority of the defendant, Secretary of HEW, to control...

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