Federal Judge Upholds Medicare Drug Price Negotiation Provisions of Inflation Reduction Act

A federal judge has upheld the Medicare drug price negotiation provisions of the Inflation Reduction Act (IRA), opposing the Chamber of Commerce’s efforts to halt the negotiations. In response to a lawsuit filed by the Chamber of Commerce, Judge Michael Newman denied their request for a preliminary injunction but did not dismiss the case. The judge also rejected the Corp’s claim that the IRA doesn’t allow drugmakers a choice of compliance and disputed their argument that negotiations would lead to immediate business harm.

Newman set a deadline for the Chamber to file an amended complaint by Oct. 13 and for the Biden administration to file another motion to dismiss by Oct. 27. The ten drugmakers up for negotiation have all agreed to the program.

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