Court denies injunction to prevent Medicare drug negotiations
Drug manufacturers must now enter into an agreement with HHS to take part in the price negotiation process.
Photo: dszc/Getty Images
A federal judge on Friday denied an attempt by the U.S. Chamber of Commerce to stop the October 1 deadline for pharmaceutical companies to begin drug price negotiations in Medicare.
The four plaintiffs – the Dayton, Ohio, Michigan and U.S. Chambers of Commerce – did not meet their burden of establishing the remedy of a preliminary injunction, according to the decision issued by the U.S. District Court for the Southern District of Ohio Western Division.
The decision was issued just before October 1, the deadline for pharmaceutical companies to comply with the law's provisions for negotiations.
The Chamber's motion was for a preliminary injunction. The court ordered the plaintiffs to file an amended complaint by October 13. Defendants have until October 27 to renew their motion to dismiss.
WHY THIS MATTERS
The civil case challenged the constitutionality of the Drug Price Negotiation Program created under the federal Inflation Reduction Act.
Under the law, the manufacturer of each selected drug must now enter into an agreement with the secretary of Health and Human Services on October 1 to take part in the price negotiation process.
THE LARGER TREND
On July 12, the Chamber filed a motion for a preliminary injunction, seeking timely relief from what it called the government's "illegal and arbitrary price control scheme."
If allowed to go into effect, price negotiation would harm not only businesses, but also patients by limiting access to medicines, deterring needed investment and stifling innovation, the Chamber said.
The provisions in the Inflation Reduction Act violate fundamental protections for free enterprise enshrined in our Constitution, which would have far-reaching implications in the future, the Chamber said.
On August 16, 2022, Congress passed, and President Biden signed into law, the Inflation Reduction Act, which created a Drug Price Negotiation Program granting the HHS secretary the authority to negotiate with drug manufacturers over the price of certain medications covered under Medicare.
HHS Secretary Xavier Becerra published a list of ten drugs subject to negotiation by the September 1 deadline.
ON THE RECORD
"The court's decision to allow Medicare drug price negotiations to move forward is welcome news," said William Alvarado Rivera, senior vice president for Litigation at AARP Foundation. "Pausing Medicare negotiations would have risked billions of dollars in savings for taxpayers – and countless lives. It is unconscionable that Americans face such high prescription drug costs that many people skip taking medication altogether or must ration it."
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
