A federal appeals court rules against an industry lawsuit challenging Medicare’s drug price negotiation program. The U.S. Court of Appeals for the Fifth Circuit rejects claims brought by PhRMA and other industry representatives, affirming that drugmakers are not entitled to sell drugs to Medicare at prices of their choosing under the negotiation framework.
The decision follows an earlier ruling that the appeals court leaves in place. News outlets report that the court’s rejection centers on the legal position taken by the drug industry versus the federal program’s authority to negotiate prices. While the outlets focus on different aspects, they converge on the same outcome: the challenge fails, and the litigation does not overturn the Medicare negotiation process. The ruling keeps the program’s contested approach intact for now, leaving the industry to pursue any further legal options.
