WASHINGTON, D.C. — Advocates are praising a recent move by the Supreme Court, calling it a victory for millions of older Americans who rely on Medicare to cover prescription medication.
This week, the court handed a big win to Medicare’s drug price negotiation program after several major drug companies tried to block the negotiation program on constitutional grounds.
For many seniors, the cost of prescription drugs can feel just as painful as the illness or condition itself. But there could be some relief after the high court declined to hear challenges from some leading drugmakers.
Companies including AstraZeneca, Janssen and others argued the government’s negotiation process violated the Fifth Amendment’s Due Process Clause. The drugmakers tried to persuade lower courts they have the constitutional right to sell patented drugs to beneficiaries at market rates. Lower courts didn’t buy the argument, and once the case reached the Supreme Court, it was shot down.
“Drug companies are not typically fans of efforts to reduce their prices. And so they responded with a lot of different lawsuits,” said Leigh Purvis, the prescription drug policy principal for AARP.
Purvis said the decision protects a program millions of older Americans are counting on.
“What that means effectively is that Medicare drug price negotiation is going to continue, which is really important because it’s providing a lot of savings for seniors,” Purvis said.
The negotiation program was created through the 2022 Inflation Reduction Act and officially began lowering prices this year.
“Those first negotiated prices became available in 2026. But we’re going to see additional drugs with negotiated prices every single year going forward,” said Purvis.
Purvis said those lower prices are already making a difference at the pharmacy counter.
“On average, the cost sharing — so what people are paying at the pharmacy — is reduced by about an average of 50%, for those drugs that are being negotiated,” said Purvis.
The number of negotiated drugs is expected to grow every year, along with new protections like Medicare’s out-of-pocket spending cap — which could spare seniors from impossible financial choices.
“And unfortunately, we know a lot of people have been making tough choices between those drugs and other things they need, like their food or their rent. And we don’t think anyone should have to make those types of decisions,” Purvis said.
