Pharmaceutical Group Sues US Government Over Medicare Drug Pricing Rule

MT newswire2026/10/07 17:43

01:43 PM EDT, 10/07/2026 (MT Newswires) -- The Pharmaceutical Research and Manufacturers of America said Wednesday it filed a lawsuit against the US government seeking to vacate Medicare's most favored nation drug pricing policy, alleging that it is unlawful and exceeds Centers for Medicare & Medicaid Services' authority. The complaint filed in the US District Court for the District of Columbia challenges the GLOBE rule, which requires drug manufacturers to pay rebates to the CMS that effectively limit Medicare Part B drug prices to benchmarks based on prices in 19 OECD countries, according to a statement. The group said the rule would provide minimal patient benefit, with only 0.3% of Medicare Part B beneficiaries expected to benefit from lower out-of-pocket costs, and could reduce investment in research and development. The group argued that the policy imposes nationwide price-setting policies without congressional authorization and raises constitutional concerns. The Department of Health and Human Services did not immediately respond to MT Newswires' request for comment. Price: 142.80, Change: +0.86, Percent Change: +0.61

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