Illustration: Shoshana Gordon/Axios
The Trump administration indicated in a court brief that it will defend Medicare drug price negotiations and oppose a drugmaker's effort to kill Democrats' signature law on constitutional grounds.
Why it matters: The Justice Department filing offered the most detailed look yet at how the new administration views a key piece of the Inflation Reduction Act and essentially carries forward Biden administration arguments in its defense.
- Select drugmakers have until Friday to decide whether to participate in the next round of negotiations on 15 widely used drugs — including Ozempic and Wegovy — with prices due to take effect in 2027.
Driving the news: The DOJ filing with the 3rd U.S. Circuit Court of Appeals came in response to Novartis AG's arguments that the law violates multiple parts of the Constitution, including the First Amendment and the takings clause of the Fifth Amendment.
- It was one of a series of pharmaceutical industry challenges to the negotiations that, to date, have failed.
- The Trump administration agreed with a lower court decision rejecting Novartis' case, saying participation in the negotiations is voluntary and that the company isn't compelled to do or say anything.
- "The government has a substantial interest in curbing the rising costs of public spending on prescription drugs, and the establishment of the negotiation program furthers that interest," DOJ wrote.
Yes, but: The administration still could make changes to the program that accommodate the industry.
- President Trump backed the idea of government price negotiations in his first campaign but then opposed House Democrats' attempts to enact them.
