Appeals Court Revives Lawsuit on Medicare Drug Pricing

A federal appeals court in New Orleans has revived a lawsuit challenging the Biden administration's Medicare drug pricing negotiation program, which was established under the Inflation Reduction Act of 2022. The 5th U.S. Circuit Court of Appeals ruled 2-1 that the case, brought by the National Infusion Center Association on behalf of pharmaceutical groups, should be reconsidered after a Texas district court previously dismissed it. The plaintiffs argue that Congress lacks the authority to delegate Medicare pricing to the executive branch, while the court's ruling does not halt the program itself, which is set to implement negotiated prices for ten drugs in 2026. The case is part of a broader series of legal challenges against the program, although none have yet succeeded in blocking it. The government recently announced price reductions of 79% to 38% on drugs including Januvia and insulin products, reflecting the program's intent to lower costs for Medicare beneficiaries. The Department of Health and Human Services has not commented on the revived lawsuit.