The Medicare Drug Price Negotiation Program survived an attempt to nullify it on Aug. 26 as a federal appeals court unanimously rejected a constitutional challenge to the program’s validity.
The case was brought by Pharmaceutical Research and Manufacturers of America, a major trade organization representing major drug companies, along with the National Infusion Center Association and the Global Colon Cancer Association.
The organizations argued that the program amounted to price fixing and deprived drug manufacturers of due process under the law.
The U.S. Court of Appeals for the Fifth Circuit, affirming a district court judgment, rejected those arguments, saying, “Agencies have for decades negotiated with manufacturers and entered into agreements for drugs subject to statutory price ceilings.” …