Medicare and Big Pharma go Toe to Toe

Have you been staying up to date with Medicare’s drug price negotiations?

It’s sure to be a wild ride when you combine money and prescriptions.

AstraZeneca is a pharmaceutical giant based in the U.K. that produces the blockbuster drug, Farxiga.

Farxiga treats Type 2 diabetes, heart failure, and chronic kidney failure.

The price tag without insurance is about $780.00 for a month’s supply.  Ouch!  Currently, there are no generic options for this drug.

CMS wisely chose Farxiga, along with 9 other drugs to lead off price negotiations with drug companies, per the Inflation Reduction Act.

How did it go?

Well, AstraZeneca was not happy about getting pushback about the cost of their drug.

They filed a lawsuit and claimed that the CMS’s guidance in placing Farxiga on the list of drugs to negotiate is a violation of the Federal Administrative Procedure Act.

AstraZeneca claimed that this placement eliminates incentives for developing new and innovative uses for the drug and narrows patient access to treatment.

To top it off, AstraZeneca claimed that the Inflation Reduction Act is unconstitutional (full story HERE).

The drugs that CMS chose for price negotiations have no generic competition, which is why the Rx companies can drive up their prices.

How did Chief Judge Connaly respond?

“…because AstraZeneca has no legitimate claim of entitlement to sell its drugs to the government at any price other than what the Government is willing to pay, its due process claim fails as a matter of law.”

That’s one giant NOPE for AstraZeneca… and one more nail in the coffin for astronomical drug prices.

This lawsuit is one of eight that have been filed by pharmaceutical companies in response to the Inflation Reduction Act.

We’ll see how the continued drama unfolds!

Unfortunately, when prices are agreed upon by the pharmaceutical companies and the government, new LOWER prices won’t go into effect until the beginning of 2026.

One thing we can all agree on?  Legislation moves like molasses!