Appeals Court Revives Challenge to US Drug Price Negotiation Law

Healthcare and drug industry groups' lawsuit against the Medicare price negotiation program will proceed after a federal court decision.

The New Orleans-based 5th U.S. Circuit Court of Appeals ruled that a Texas judge wrongly dismissed the case due to jurisdiction issues.
The lawsuit, brought by the Pharmaceutical Research and Manufacturers of America and others, claims the program gives excessive power to federal regulators.
The program, part of the Inflation Reduction Act, mandates drug price negotiations for Medicare, covering 66 million people.
Despite ongoing legal challenges, the first round of negotiated price cuts on 10 drugs, including Januvia and insulin products, is set to take effect in 2026.
The appeals court's decision allows the National Infusion Center Association's claims to be heard, disagreeing with the initial ruling that disputes must first go to the HHS.