5th Circuit upholds Medicare's authority to negotiate drug prices
The U.S. Court of Appeals for the 5th Circuit rejected a pharmaceutical industry lawsuit challenging Medicare's power to negotiate drug prices directly. The court found that drugmakers have no entitlement to sell their products to Medicare at a price of their choosing.
The U.S. Court of Appeals for the 5th Circuit has rejected a lawsuit filed by pharmaceutical industry representatives challenging Medicare's authority to negotiate drug prices directly with manufacturers, according to reporting by The Hill.
The appellate court affirmed a prior ruling that upheld the federal program's negotiation power. In its decision, the court found that drugmakers are not entitled to sell their products to Medicare at a price they would prefer, establishing a legal precedent that narrows industry claims to pricing control in federal insurance negotiations.
A federal appeals court affirmed Medicare's legal authority to negotiate drug prices against a challenge from the pharmaceutical industry.
The ruling settles a constitutional question about Medicare's scope and affirms the program's power to impose negotiated prices rather than accept manufacturer-set rates. Watch for any appeal to the Supreme Court, which would be the next venue for the pharmaceutical industry to contest the decision.
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- The Hill center / high
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