The Association for Accessible Medicines has filed a lawsuit to stop enforcement of a new Maryland law allowing the state to punish drug companies accused of "price gouging" customers by raising the cost of medications.

The new law was passed by Maryland's legislature earlier this year despite objections from Gov. Larry Hogan, who refused to sign the legislation but also didn't veto it, The Washington Post reported. Starting in October, Maryland's attorney general will have the ability to take legal action against drug companies that dramatically increase the price of off-patent or generic drugs. http://wapo.st/2tUtWEd

Maryland is the first state to enact a price gouging law for generic medications. The legislation was a response to several high-profile incidents in which generic drug manufacturers were criticized for raising the price of life-saving medications over a short period of time.

AAM—which represents generic drug manufacturers—argued in a statement Thursday that the new law was discriminatory and unconstitutional. The association noted the law does not cover brand-name drugs, "which accounts for three-quarters of total prescription drug spending."

"Rather than allow the vibrant competition in the generic drug marketplace to continue working for patients, Maryland would become the first state to reject generic competition in favor of more government regulation—of generic drugs, the only segment of health care costs that is actually declining," AAM CEO Chip Davis said.

The lawsuit was filed in federal district court in Maryland. http://bit.ly/2tZQS60

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