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Federal court rejects PhRMA challenge to Medicare drug price negotiation

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27.08.2026

Federal court rejects PhRMA challenge to Medicare drug price negotiation

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White House Headlines - August 27, 2026

White House Headlines - August 27, 2026

A federal appeals court on Wednesday ruled against a lawsuit filed by representatives of the pharmaceutical industry challenging the federal Medicare drug price negotiation program, finding that drugmakers are not entitled to sell their products to Medicare at a price they would prefer.

The U.S. Court of Appeals for the Fifth Circuit affirmed a prior ruling granting summary judgement against the Pharmaceutical Research and Manufacturers of America (PhRMA), a trade group representing the pharmaceutical industry.

The ruling this week is the latest in what has been a slew of federal courts ruling in favor of the Medicare drug price negotiation program established through the Inflation Reduction Act.

Much of the court’s decision, as has been with other courts, boiled down to the fact that drugmaker........

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