# The U.S. Supreme Court declined to hear a pharmaceutical industry challenge to the Medicare drug price negotiation program.

*biotech · news · 2026-05-19 · Benzinga*

## Key points

- The Supreme Court declined to hear the pharmaceutical industry's challenge to Medicare drug price negotiation.
- The first negotiated prices for 10 drugs under Medicare took effect this year.
- CMS estimated second-cycle negotiated prices could have saved Medicare about $8.5 billion in 2024.
- White House economists projected $529 billion in savings from the broader drug-pricing framework over 10 years.

The U.S. Supreme Court on Monday declined to hear a pharmaceutical industry challenge to the Medicare drug price negotiation program created under former President Joe Biden's Inflation Reduction Act, according to Reuters. The companies argued the program imposed government-dictated price controls and threatened innovation. Reuters reported that the drugmakers also claimed the policy violated constitutional protections for due process, free speech and property rights. The Medicare negotiation framework allows the Centers for Medicare & Medicaid Services, or CMS, to negotiate prices directly with manufacturers for certain high-cost medicines covered under Medicare. Companies that refuse to participate could face steep excise taxes or withdraw products from Medicare programs. Program Expands The first negotiated prices for 10 drugs already took effect this year. The Trump administration has continued defending the Biden-era pricing mechanism as part of its broader effort to reduce prescription drug costs. CMS previously estimated that negotiated prices from the second cycle could have reduced Medicare spending by roughly $8.5 billion in 2024. "Under President Trump's leadership, CMS is taking strong action to target the most expensive drugs in Medicare," CMS Administrator Mehmet Oz said in January while announcing the latest negotiation cycle, according to Reuters. Pricing Debate White House economists previously estimated that the administration's broader drug-pricing framework could generate roughly $529 billion in savings over the next decade, while Medicaid savings could total approximately $64.3 billion. Sen. Peter Welch (D-Vt.) recently voiced support for the administration's "most favored nation" drug pricing model, calling for Congress to formally advance the proposal. Reuters noted that Americans pay more for prescription drugs than people in any other country. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock

**Countries:** United States

[Read the full story on Benzinga](https://www.benzinga.com/news/health-care/26/05/52654916/supreme-court-hands-major-blow-to-big-pharmas-fight-against-biden-era-medicare-drug-pricing-law)

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