Supreme Court upholds Medicare drug price negotiation law, rejects Big Pharma challenge

The Supreme Court denied Big Pharma's constitutional challenge to Medicare's drug-price negotiation powers established by the Inflation Reduction Act. The ruling preserves HHS's authority to set maximum fair prices for certain high-cost Part D drugs. The first round of negotiated prices takes effect in 2028 for ten initial drugs. Manufacturers have no further legal avenue to block the program, which could put downward pressure on drug spend for practices managing high-cost Part D therapies. The decision solidifies the regulatory landscape, ending years of litigation uncertainty.