US Supreme Court Rejects 6 Pharma Appeals Over Medicare Drug Price Talks
Updated
Updated · CNN · May 18
US Supreme Court Rejects 6 Pharma Appeals Over Medicare Drug Price Talks
4 articles · Updated · CNN · May 18
Six drugmakers including AstraZeneca and Janssen lost their Supreme Court bid to block Medicare price negotiations, leaving lower-court rulings intact and the program in force.
The companies argued the 2022 Inflation Reduction Act creates a coerced, unconstitutional “sham negotiation,” but judges have consistently said Medicare participation is voluntary and manufacturers can exit federal programs.
10 drugs in the first round began using negotiated prices in January, with the government projecting $6 billion in federal savings and $1.5 billion less in seniors’ out-of-pocket costs.
15 more drugs in a second round are projected to save Medicare about $12 billion when prices take effect next January, while third-round negotiations are already underway.
The ruling preserves a program aimed at curbing a Medicare drug bill that topped $250 billion in 2021, though other industry lawsuits remain pending.
Beyond court battles, how is the drug industry reshaping its business to survive permanent government price negotiations?
As Medicare slashes prices on today's blockbuster drugs, what will happen to the pipeline for tomorrow's cures?
With government price controls spreading, is the era of the multi-billion dollar blockbuster drug coming to an end?
Landmark Supreme Court Ruling Enables Medicare to Slash Drug Prices for Millions: Key Impacts and Industry Response
Overview
On May 18, 2026, the US Supreme Court delivered a landmark decision by rejecting appeals from six pharmaceutical companies, ending extensive legal challenges against the Medicare drug price negotiation program. This ruling solidified the program’s future and marked a pivotal moment for drug pricing in the nation. By upholding the government’s authority to negotiate drug prices, the Court’s decision ushered in a new era for drug pricing, empowering Medicare to negotiate directly with manufacturers for lower prescription costs. This significant legal victory for the government sets the stage for lower drug prices and greater affordability for millions of Americans.