A federal judge in Ohio on Friday blocked an attempt by corporate interests to block historic negotiations between Medicare and Pharmaceuticals over certain drug prices.
Medicare gained the power to negotiate drug prices as part of the Inflation Control Act (IRA), but several industry groups and drug companies sued to block the program, arguing that it was unconstitutional. CNN explained. One such group is the U.S. Chamber of Commerce, which filed the lawsuit in June. An Ohio judge on Friday denied a request for a preliminary injunction to block the program by Oct. 1, when drug companies must agree to negotiate or not.
“This is the first major blow to Big Pharma in its legal battle to block the Inflation Control Act’s drug price negotiation provisions,” Peter Maberdach, director of Public Citizen’s drug access program, said in a statement. ” he said.
“The Biden-Harris Administration will not stop fighting for what we know to be true: Nothing in the Constitution prohibits Medicare from negotiating drug prices.”
“The Chamber of Commerce’s lawsuit is without merit,” Maybaldack continued. “The court made the right decision not to grant an injunction, which would cause unnecessary suffering to patients and cause rationing of care.”
Judge Michael Newman of the Southern District of Ohio, a Trump appointee, ruled that the court “does not show a high probability of success or irreparable harm.” CNBCreport.
“Accordingly, the request for immediate preliminary injunctive relief…is denied,” Newman concluded.
Newman also rejected the Biden administration’s request to dismiss the case. Instead, he gave the Chamber of Commerce until Oct. 13 to answer several questions about his claims, and the administration until Oct. 27 to renew the motion to dismiss.
Congress had argued that the bargaining program was unconstitutional for multiple reasons, but Newman pointed out that drug companies are not forced to participate in Medicare.
He said, “Because there is no constitutional right (or requirement) to do business with the government, the results of that participation are not considered unconstitutional.”
The Biden administration welcomed the news.
“Today’s ruling in the Southern District of Ohio confirms that Medicare will continue to negotiate lower prices for millions of seniors,” said press secretary Karine Jean-Pierre. Said In a statement. “And the Biden-Harris administration will not stop fighting for what we know to be true: There is nothing in the Constitution that prohibits Medicare from negotiating drug prices.”
The administration announced the first 10 drugs up for negotiation in August. They included the blood clot drugs Eliquis, Jardiance, Charelto, Januvia, Fasiga, Entrest, Enbrel, Imbruvica, Stelara, and several insulins from Nordisk, he said. CNN.
With the injunction blocked, “pharmaceutical companies should agree to participate in a bargaining program in good faith,” Maybaldach said. “This program is an important first step toward ending the exorbitant prices charged to Medicare enrollees. It’s time for Big Pharma to drop its lawsuits and lower prices.”
