A federal appeals court has upheld the legality of Medicare’s drug price negotiation program, rejecting pharmaceutical industry claims that the government cannot impose lower prices on medications sold to seniors. The ruling confirms that drugmakers cannot dictate pricing terms to Medicare, reinforcing the program’s authority to set reimbursement rates. Legal challenges from the industry sought to block the policy, arguing it interfered with their ability to set prices, but the court dismissed those arguments. The decision strengthens the government’s power to negotiate drug costs, potentially reshaping how pharmaceutical companies price medications for public programs.
A federal appeals court on Wednesday ruled against a lawsuit filed by representatives of the pharmaceutical industry challenging the federal Medicare drug price negotiation program, finding that drugmakers are not entitled to sell their products to Medicare at a price they would prefer. The U.S. Court of Appeals for the 5th Circuit affirmed a prior...
