Pharmaceutical companies are facing legal setbacks against the Medicare Drug Price Negotiation Program. The U.S. Court of Appeals for the Second Circuit dismissed Boehringer Ingelheim's constitutional claims, which insisted the program violated various amendments and conditions. The court found that participation is voluntary and the Inflation Reduction Act allows the Centers for Medicare and Medicaid Services to implement the program without the usual notice-and-comment rulemaking process. Additionally, challenges to the program by the U.S. Chamber of Commerce also resulted in unfavorable outcomes, highlighting the ongoing tension in healthcare policy.
"While we support affordable health care, the price controls that we are challenging would reduce access to new medicines that Americans are counting on, and would set a devastating precedent for all U.S. businesses." - Andrew Varcoe, U.S. Chamber of Commerce
The U.S. Court of Appeals for the Second Circuit affirmed a district court's judgment dismissing Boehringer Ingelheim Pharmaceuticals, Inc.'s constitutional claims against the Medicare Drug Price Negotiation Program.
The appellate court upheld that participation in the Medicare Drug Price Negotiation Program is voluntary, with no regulation of Boehringer's private market conduct.
The Inflation Reduction Act authorized CMS to implement the price negotiation program without following the APA's notice-and-comment requirement for the first three years.
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