Court dismisses lawsuit challenging Medicare drug price negotiations
Newsy
The Biden administration is working on forcing the pharmaceutical industry to lower the cost of popular drugs for Medicare Part D recipients.
A federal judge has ruled against the pharmaceutical industry in its attempt to get the court to say the Biden administration's effort to negotiate Medicare drug price prices is unconstitutional.
Judge David Alan Ezra of the Western District of Texas ruled that the court was not the proper venue for the case. The court said the case could only be heard after the plaintiff's grievances go through an administrative review.
The ruling does leave open the possibility of future litigation, leaving whether the government can actually set the prices of popular medicines unsettled.
Earlier this month, the Centers for Medicare & Medicaid Services notified drug companies of the proposed prices for 10 popular medications. Companies can either accept the government's proposed prices or counteroffer.
If companies do not agree with the government on pricing, the two sides will be required to negotiate pricing in the spring and summer of 2024. The prices would then go into effect in 2026.
