In a significant victory for beneficiaries, the first appeals court to consider substantive legal claims against the Medicare drug price negotiation program has rejected arguments put forward by drug manufacturer AstraZeneca. In a decision announced on May 8, 2025, the Third Circuit Court of Appeals unanimously held that the drug company does not have a valid due process claim against the negotiation program.
The Center for Medicare Advocacy joined an amicus brief filed by AARP and a coalition of beneficiary advocates in support of the Medicare prescription drug price negotiation program. The brief explains that drug price negotiation is urgently needed because it will help older adults and people with disabilities afford life-saving medications, protect the financial integrity of Medicare, and save taxpayers billions of dollars. The first round of negotiations for Part D drugs concluded in August 2024. When the negotiated prices take effect in 2026 along with other cost-savings provisions of the Inflation Reduction Act, CMS projects that Part D enrollees will save an estimated $1.5 billion.
- Read the Third Circuit decision here.
- Read the amicus brief here.
- More background on this case and the other ongoing drug negotiation lawsuits is available here.
May 8, 2025 – A. Bers