Challenge to US drug price negotiation program revived by appeals court - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
October 1, 2024 Newswires
Share
Share
Post
Email

Challenge to US drug price negotiation program revived by appeals court

BRENDAN PIERSON ReutersHawaii Tribune-Herald

A U.S. appeals court revived a lawsuit on Friday by healthcare and drug industry groups challenging the first-ever U.S. law requiring pharmaceutical companies to negotiate drug prices with the government's Medicare health insurance program that covers 66 million people.

The decision from the New Orleans-based 5th U.S. Circuit Court of Appeals did not address the merits of the case, which was brought by the nation's largest drug industry lobbying group, Pharmaceutical Research and Manufacturers of America and others. Instead, the court found only that a Texas judge was wrong to dismiss the case in February on the grounds that he did not have jurisdiction to hear it.

The case is one of at least eight lawsuits seeking to block the program. So far, none has been successful, and the first round of price negotiations was allowed to go forward, with the government last month announcing negotiated price cuts ranging from 79% to 38% on 10 drugs, including Merck & Co's diabetes drug Januvia and Novo Nordisk's insulin products. The new prices go into effect in 2026.

"We are pleased the 5th Circuit agreed that the merits of our lawsuit challenging the (Inflation Reduction Act's) drug pricing provisions should be heard," a PhRMA spokesperson said in a statement. The other two plaintiffs - the Global Colon Cancer Association and the National Infusion Center Association (NICA) - also praised the decision.

The U.S. Department of Health and Human Services, which oversees the program, declined to comment.

The drug industry and healthcare groups sued the government last year in federal court in Austin, Texas, where NICA is based. They claimed that the drug price negotiation program, a signature initiative of Democratic President Joe Biden passed as part of the Inflation Reduction Act, violated the U.S. Constitution by giving too much power to federal regulators and imposing excessive fines on companies that refuse to participate.

U.S. District Judge David Ezra ruled in February that NICA, which claimed its infusion center members would lose money because their Medicare reimbursement is tied to the price of the drugs they administer, could not bring the case in court because the federal Medicare law required it to bring disputes over reimbursement to the HHS first.

The judge added that without the Texas-based plaintiff, he had no jurisdiction to hear the other groups' claims.

But the 2-1 5th Circuit panel on Friday disagreed and said NICA's claims stemmed from the Inflation Reduction Act, not the Medicare law, meaning that it was not required to bring its case before HHS.

Circuit Judge Jennifer Walker Elrod wrote the opinion, joined by Circuit Judges Kyle Duncan. Both were appointed by Republicans. Circuit Judge Irma Ramirez, who was nominated by Biden, dissented, agreeing with Ezra's reasoning.

Older

US inflation data cemented big cut for one Fed official, dissent for another

Newer

Dallas Small Business Health Insurance Faces Risks Amid Potential Policy Changes

Advisor News

  • SEC in ‘active and detailed’ settlement talks with accused scammer Tai Lopez
  • Sketching out the golden years: new book tries to make retirement planning fun
  • Most women say they are their household’s CFO, Allianz Life survey finds
  • MassMutual reports strong 2025 results
  • The silent retirement savings killer: Bridging the Medicare gap
More Advisor News

Annuity News

  • Rethinking whether annuities are too late for older retirees
  • Advising clients wanting to retire early: how annuities can bridge the gap
  • F&G joins Voya’s annuity platform
  • Regulators ponder how to tamp down annuity illustrations as high as 27%
  • Annual annuity reviews: leverage them to keep clients engaged
More Annuity News

Health/Employee Benefits News

  • Wellpoint taps Rachel Chinetti as president
  • Proposed changes to MA and Part D would harm seniors’ coverage in 2027
  • Pan-American Life Insurance Group Reports Record 2025 Results; Premiums Reached $1.86 Billion and Net Income Totaled $110 Million as Company Enters Its 115th Year
  • LightSpun and Smile America Partners Announce Partnership to Accelerate Dental Provider Enrollment to Expand Treatment for 500K Underserved Kids
  • Lawmakers try again to change ‘reflection in the mirror’ for cancer patients
More Health/Employee Benefits News

Life Insurance News

  • LIMRA: Individual life insurance new premium sets 2025 sales record
  • How AI can drive and bridge the insurance skills gap
  • Symetra Partners With Empathy to Offer Bereavement Support to Group Life Insurance Beneficiaries
  • National Life Group Ranked Second by The Wall Street Journal in Best Whole Life Insurance Companies of 2026
  • Majority of Women Now Are the Chief Financial Officer of Their Household, Allianz Life Study Finds
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Press Releases

  • RFP #T25521
  • ICMG Announces 2026 Don Kampe Lifetime Achievement Award Recipient
  • RFP #T22521
  • Hexure Launches First Fully Digital NIGO Resubmission Workflow to Accelerate Time to Issue
  • RFP #T25221
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet