Rulings hailed as victories for consumers and lower prescription drug prices
of ConsumerAffairsAugust 7, 2025
- Three federal courts reject legal challenges to Medicare drug price negotiation
- Judges side with government in cases filed by Boehringer Ingelheim, PhRMA, and the U.S. Chamber of Commerce
- Rulings hailed as victories for consumers and lower prescription drug prices
In a sweeping series of legal setbacks for the pharmaceutical industry and its allies, three federal courts have rejected constitutional challenges to the Biden administrations Medicare drug price negotiation program in the past two days.
On Thursday, the U.S. Court of Appeals for the Second Circuit dismissed an attempt by Boehringer Ingelheim to block Medicare from negotiating lower prices for brand-name drugs. In a separate ruling the same day, a federal district court in Texas rejected arguments by the Pharmaceutical Research and Manufacturers of America (PhRMA) claiming the program violated the Constitution.
The wave of defeats began Wednesday, when the U.S. Court of Appeals for the Sixth Circuit denied the U.S. Chamber of Commerces bid to advance its constitutional challenge, marking the third time in 48 hours that judges upheld the governments authority to negotiate drug prices under Medicare.
“Victory for patients”
These rulings are a major victory for patients and a blow to the drug industry’s efforts to maintain unchecked pricing power, said Nandan Joshi, an attorney with Public Citizen, one of the advocacy groups that filed amicus briefs in support of the government. From New York to Texas, courts are rejecting the industrys efforts to profit off of Medicare while charging seniors sky-high prices for brand name drugs.
Public Citizen, along with Doctors for America, Protect Our Care, and Families USA, argued in their briefs that the drug price negotiation provisionpart of the Inflation Reduction Actwas both constitutional and necessary to rein in drug costs for American seniors and taxpayers. Still, the group has cautioned that loopholes and structural limits in the law will blunt its impact unless further reforms are made.
The rapid-fire series of court wins for the government strengthens the legal foundation of the Medicare price negotiation program as it moves toward implementation, potentially reducing costs for millions of Americans who rely on expensive medications.
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