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Pharmaceutical Research & Manufacturers of America v. Walsh January 22, 2003 (01-0188) return to case listing Case Summary In 2000, Maine passed a law establishing the "Maine Rx Program", aimed at lowering prescription drug prices for Maine residents. This program allows the state to use its control over the Medicaid program to obtain drug discounts from manufacturers. Rebates negotiated with drug manufacturers by the Maine Department of Health Services are used to fund a discount prescription drug program open to all Maine residents. Petitioners sued the state, and the district court held that the Maine law regulated out-of-state revenues in violation of the Dormant Commerce Clause, and that it conflicted with the federal Medicaid law and was therefore preempted under the Supremacy Clause. On appeal, the U.S. Court of Appeals for the First Circuit reversed, holding that the state statute does not offend the Dormant Commerce Clause because it only regulates activities within the state and that it does not conflict with the federal Medicaid statute. The opinion of the First Circuit is found at 249 F. 3d 66. To see the opinion of the lower court, click here. PREDICTED OUTCOME ACTUAL OUTCOME Forecasting Model Expert One Expert Two Expert Three 7-2 to Affirm 8-1 to Reverse 9-0 to Affirm 6-3 to Affirm 6-3 to Affirm VOTING TO REVERSE O'Connor Breyer Stevens O'Connor Scalia Kennedy Souter Thomas Ginsburg Breyer Rehnquist O'Connor Breyer Rehnquist O'Connor Kennedy VOTING TO AFFIRM Rehnquist Stevens Scalia Kennedy Souter Thomas Ginsburg Rehnquist Rehnquist Stevens O'Connor Scalia Kennedy Souter Thomas Ginsburg Breyer Stevens Scalia Kennedy Souter Thomas Ginsburg Stevens Scalia Souter Thomas Breyer Ginsburg return to case listing