Janssen Pharmaceuticals, Inc. v. Becerra et al.

Why this Matters:

The plaintiff argues that the Inflation Reduction Act’s Medicare drug negotiation process violates the First Amendment, the Takings Clause of the Fifth Amendment, and creates an unconstitutional condition on Medicare and Medicaid participation. Medicare’s authority to negotiate the price of certain single-source, high-priced drugs is estimated to result in substantial savings for Medicare beneficiaries and the federal government. 

Potential Impact:

Successful challenges to Medicare’s negotiation authority would negate savings to Medicare beneficiaries and taxpayers, and could severely restrict federal regulatory authority in the health care arena.