STATEMENT: Judge Dismisses Case Brought By Chambers of Commerce, Marks Seventh Straight Legal Victory For Medicare Negotiation And Patients

Federal Judge Tosses Another Lawsuit Against Medicare Negotiation, Slams Industry for Trying To “Manipulate the System”

WASHINGTON D.C. — Marking the seventh consecutive win against the multi-million dollar legal campaign to block Medicare negotiation, on Thursday, August 8th, a federal district judge in Ohio dismissed the legal challenge to Medicare’s authority to negotiate lower drug prices brought by various Chambers of Commerce, including the Dayton Area Chamber of Commerce, the Ohio Chamber of Commerce, the Michigan Chamber of Commerce, and the U.S. Chamber of Commerce.

In his dismissal of the suit for lack of standing, district judge Michael J. Newman slammed the Chamber of Commerce’s “venue shopping” for a potentially friendly court, stating, “Plaintiffs have attempted to manipulate the system and manufacture standing to obtain a favorable venue… The Court will not adopt a loose interpretation of the standing requirement for the purpose of forum shopping.”

This dismissal marks yet another win for patients, and comes as the Centers for Medicare and Medicaid (CMS) prepare to announce the new maximum fair prices for the first 10 drugs selected for price negotiation.

David Mitchell, Founder of Patients For Affordable Drugs, issued the following statement:

“The drug companies and their allies fighting to stop Medicare negotiation in the courts continue to lose before judges in circuit after circuit. As of today, the industry is 0 for 7, as a judge in Ohio sent them packing and rebuked them for trying to manipulate the system through venue shopping.

“The pharmaceutical industry has lost consistently on the merits, and now has been called out for trying to circumvent the rules. It is doing everything in its power to overturn the will of the American people, but failing time after time.

“It’s US vs. Pharma and we are winning because the drug companies’ claims thus far have been found to lack merit on both substance and procedure. As they appeal, we will continue to fight.”

Patients For Affordable Drugs NOW has signed onto seven amicus briefs, including in the Chambers’ case, led by Public Citizen and supported by Protect Our Care, Doctors for America, and Families USA to support the government’s opposition to the lawsuits and amplify the experiences of patients harmed by high drug prices.

Background on Medicare negotiation:

The 10 drugs chosen for negotiation were identified as the top spending drugs covered under Medicare Part D without generic or biosimilar equivalents that have been on the market for at least seven years and also meet other selection criteria.
Negotiations between CMS and drug manufacturers of the first 10 drugs selected for Medicare negotiation ed on August 1, 2024, and maximum fair prices are expected in the coming days.
The negotiation process will only apply to a maximum of 10-15 drugs each year for a maximum of 60 drugs by 2029. Even after reforms take effect, Medicare will continue to be the largest purchaser of prescription drugs, maintaining its status as a significant source of revenue for drug companies, and Americans will still pay the highest drug prices globally.
Unlike every other sector in health care where Medicare sets prices – such as doctor fees, hospital costs, and equipment – pharmaceutical companies have been exempt from any form of negotiation.
Medicare negotiation is supported by more than 80 percent of voters.
P4AD launched the US v Pharma campaign to mobilize patients and advocates to defend the hard-won victory of Medicare negotiation against Big Pharma’s multi-million dollar legal efforts to halt the program from delivering relief to patients.

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Patients For Affordable Drugs is the only national, bipartisan patient advocacy organization focused exclusively on lowering drug prices. P4AD does not accept funding from organizations that profit from the development or distribution of prescription drugs. To learn more, visit PatientsForAffordableDrugs.org.