Federal Judge Upholds Biden Administration's Medicare Drug-Price Negotiation Program

Benzinga 2024-04-30

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A federal judge rejected lawsuits from Johnson & Johnson and Bristol Myers Squibb, ruling that the Biden administration's Medicare drug-price negotiation program is constitutional. Drugmakers argued that price negotiations for their drugs by the government violated their freedom of speech and served as an unconstitutional condition for participating in Medicaid and Medicare programs. However, a New Jersey federal judge ruled that participation is voluntary and does not require drugmakers to set aside or transmit drugs at a new price, concluding that reduced profitability does not equate to a physical taking or direct appropriation of their medications.

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