Medicare Prescription Drug Negotiation Program Stands Firm

The Inflation Reduction Act of 2022 (IRA) authorizes Medicare to negotiate prices for certain high-cost prescription drugs, producing substantial projected savings for beneficiaries, taxpayers, and the federal government. 42 U.S.C. § 1320f.

Drug manufacturers have repeatedly sought Supreme Court intervention to halt the program, arguing the IRA’s negotiation provisions violate the First, Fifth, and Eighth Amendments as well as the Administrative Procedure Act. To date, however, every district court—as well asthe U.S. Courts of Appeals for the Second and Third Circuits—that reached the merits of a challenge has upheld the program. See, e.g., Boehringer Ingelheim Pharms., Inc. v. U.S. Dep’t of Health & Hum. Servs., 150 F.4th 76 (2d Cir. 2025); AstraZeneca Pharms. LP v. Sec’y U.S. Dep’t of Health & Hum. Servs., 137 F.4th 116 (3d Cir. 2025).

AARP Foundation staunchly supported the maintenance of the drug negotiation program as amici curiae in pivotal cases. See Fighting for Affordable Prescription Drugs, AARP Found. (last visited Aug. 17, 2026) (citing eight amicus briefs filed by AARP and AARP Foundation). In these briefs, we argued that the program helps millions of older adults afford life-sustaining prescription drugs, protects the financial integrity of Medicare, and saves billions of dollars for taxpayers.

On May 18, 2026, the Supreme Court denied six separate industry petitions for certiorari. See, e.g., AstraZeneca Pharms. LP v. Kennedy, 224 L. Ed. 2d 830 (May 18, 2026); Janssen Pharms., Inc. v. Kennedy, 224 L. Ed. 2d 830 (May 18, 2026); Bristol Myers Squibb Co. v. Kennedy, 224 L. Ed. 2d 830 (May 18, 2026); Novo Nordisk Inc. v. Kennedy, 224 L. Ed. 2d 830 (May 18, 2026); Boehringer Ingelheim Pharms, Inc., 224 L. Ed. 2d 831 (May 18, 2026); Novartis Pharms. Corp. v. Kennedy, 224 L. Ed. 2d 832 (May 18, 2026). These denials left in place lower court decisions from the Third Circuit and other jurisdictions that upheld the negotiation program, ending the first major wave of coordinated legal attacks by top drug manufacturers.

Impact       

By declining to intervene, the Supreme Court allowed the Medicare Prescription Drug Price Negotiation Program, expected to significantly reduce the cost of selected drugs, to move forward. For older adults, this ensures the continuation of lower out-of-pocket costs on high-priced medications, especially for retirees on fixed incomes. Additionally, Medicare retains the authority to expand future price negotiations to up to 40 prescription drugs, including popular diabetes and weight-loss drugs, locking in deeper price reductions.

Rachel N. Lokken, RLokken@aarp.org