Teva Pharmaceuticals USA, Inc. et al. v. Kennedy et al.

Why this Matters:

The plaintiffs argue that the Inflation Reduction Act’s Medicare drug negotiation process violates the Administrative Procedure Act and Due Process Clause of the Fifth Amendment. 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.