09/06/2026
Another Federal Court Upholds Medicare Drug Price Negotiation
Last week, a federal appeals court rejected the Pharmaceutical Research and Manufacturers of America’s (PhRMA) attempt to repeal Medicare drug price negotiation. The U.S. Circuit Court of Appeals for the 5th Circuit issued the ruling on August 26, finding that drug price negotiation does not violate the pharmaceutical industry’s rights because participation is voluntary for corporations. The decision affirmed a previous court ruling dismissing PhRMA’s challenge.
The decision is the latest in a series of cases where judges ultimately rejected the pharmaceutical industry’s efforts to overturn drug price negotiation, including challenges brought by Boehringer Ingelheim and the U.S. Chamber of Commerce. The U.S. Supreme Court also rejected drug corporations’ attempts to invalidate the law this May.
“Alliance members fought tirelessly for almost 20 years to give Medicare the power to negotiate lower drug prices for some of the most expensive prescription drugs used by older Americans,” said Richard Fiesta, Executive Director of the Alliance.
“We’re glad that once again judges have recognized that drug corporations should not get special treatment when they do business with the federal government. Congress must build on the success of Medicare drug price negotiation by expanding the number of prescription drugs that are eligible for the program.”