Current:Home > NewsAn appeals court has revived a challenge to President Biden’s Medicare drug price reduction program -Ascend Wealth Education
An appeals court has revived a challenge to President Biden’s Medicare drug price reduction program
EchoSense Quantitative Think Tank Center View
Date:2025-04-07 03:25:12
NEW ORLEANS (AP) — A constitutional challenge to the Biden administration program enabling Medicare to negotiate lower prices for widely used prescription drugs was revived by a federal appeals court in New Orleans in a 2-1 decision Friday.
Congress created the program as part of the Inflation Reduction Act passed in 2022. The first 10 drugs targeted for negotiations were announced last year, and new prices, agreed upon last month, are set to take effect in 2026.
Friday’s ruling was handed down by the 5th U.S. Circuit Court of Appeals. It does not derail the program, but the ruling sends the case back for further consideration by the Texas-based federal district court that tossed it in February. And it means the case is likely to wind up back before the conservative-dominated appeals court where opponents of President Joe Biden’s initiatives often pursue challenges on issues ranging from abortion access to immigration to gun rights..
The lead plaintiff in the lawsuit is the National Infusion Center Association, which filed as a representative of the Pharmaceutical Research and Manufacturers of America (PhRMA) and the Global Colon Cancer Association.
Among their arguments is that Congress lacked constitutional authority to delegate Medicare pricing authority to an executive branch department.
The district court said the federal Medicare Act requires such claims to first be channeled through the Department of Health and Human Services. But 5th Circuit Judge Jennifer Walker Elrod wrote that the claim was brought under the IRA, not the Medicare Act. Elrod, who was nominated to the 5th Circuit by former President George W. Bush, wrote on behalf of herself and Judge Kyle Duncan, nominated by former President Donald Trump.
In a dissent, Judge Irma Ramirez, nominated by President Joe Biden, said the lawsuit was properly dismissed and that the Medicare Act “provides the standing and substantive basis” of the National Infusion Center Association’s claims.
The Department of Health and Human Services declined comment.
PhRMA released a statement applauding the ruling: “We are pleased the Fifth Circuit agreed that the merits of our lawsuit challenging the IRA’s drug pricing provisions should be heard.”
The advocacy group AARP was critical of the lawsuit. “Any efforts to stop the drug negotiation program in its tracks risks the wellbeing of millions of older adults in the country who have waited far too long to afford medicine,” the organization said in an emailed release.
veryGood! (5)
Related
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- The one thing you'll want to do is the only thing not to do while driving during solar eclipse
- Stefon Diggs trade winners, losers and grades: How did Texans, Bills fare in major deal?
- Jay-Z’s Made In America festival canceled for the second year in a row
- What do we know about the mysterious drones reported flying over New Jersey?
- Prosecutors recommend at least 10 years in prison for parents of Michigan school shooter
- 'New Mr. WrestleMania' Seth Rollins readies to face 'the very best version' of The Rock
- WWE WrestleMania 40 details: Time, how to watch, match card and more
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- North Carolina State in the women's Final Four: Here's their national championship history
Ranking
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- 'Gilmore Girls' alum Matt Czuchry addresses Logan criticism, defends Rory's love interests
- Caitlin Clark picks up second straight national player of the year award
- Botswana threatens to send 20,000 elephants to roam free in Germany in public dispute over trophy hunting
- Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
- Caitlin Clark picks up second straight national player of the year award
- Bills to trade star WR Stefon Diggs to Texans in seismic offseason shakeup
- Bringing dental care to kids in schools is helping take care of teeth neglected in the pandemic
Recommendation
Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
Bills to trade star WR Stefon Diggs to Texans in seismic offseason shakeup
Cute or cruel? Team's 'Ozempig' mascot draws divided response as St. Paul Saints double down
Demolition of groundbreaking Iowa art installation set to begin soon
New Zealand official reverses visa refusal for US conservative influencer Candace Owens
Horoscopes Today, April 2, 2024
'Coordinated Lunar Time': NASA asked to give the moon its own time zone
Facing mortality, more Americans wrote wills during the pandemic. Now, they're opting out