Federal Judge Upholds Medicare Drug Price Negotiations

A federal judge in New Jersey has rejected legal challenges to the Biden administration’s Medicare drug price negotiations from Johnson & Johnson and Bristol Myers Squibb. The ruling is a significant victory for the administration, as it strengthens the constitutionality of the program and weakens the pharmaceutical industry’s strategy of seeking varying decisions in lower courts. The ruling will allow the government to negotiate lower drug prices for seniors under the Inflation Reduction Act, potentially impacting drugmakers’ profits.

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