Supreme Court rejects appeal from drugmakers over price negotiations
by Joe Fisher · UPIMay 18 (UPI) -- The U.S. Supreme Court ruled Monday it will not take up an appeal from a group of drug makers attempting to block negotiations for lower drug prices.
Several pharmaceutical companies appealed the program that was instituted under the Biden administration to allow Medicare to negotiate drug prices, the government billions of dollars.
AstraZeneca and Janssen are among the drug companies that challenged the program. Attorneys for AstraZeneca said the program does not lead to real negotiations and they are not being justly compensated.
"Contrary to its statutory name, it involves no genuine 'negotiation,'" the attorneys said. "The manufacturer's only alternative is to withdraw all its drugs from Medicare and Medicaid -- depriving patients nationwide of access to critical medicines and foreclosing nearly half the U.S. prescription-drug market."
The drugmakers also said they are being compelled to enter agreements with Medicare or face higher taxes on their products.
The program was part of the 2022 Inflation Reduction Act and has been kept intact by President Donald Trump.
Multiple lawsuits challenged the program around the country. Judges have consistently ruled that participating in Medicare is voluntary, rejecting the lawsuits.
AARP reported in December that Medicare enrolled will save an average of 50% or more in out-of-pocket costs for qualifying drugs.
The first round of drugs under the program include treatments for cancer, heart disease, autoimmune diseases and diabetes.
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Vice President JD Vance speaks during a news conference on anti-fraud initiatives in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House on Wednesday. Photo by Daniel Heuer/UPI | License Photo