Supreme Court Upholds Medicare Drug Price Negotiations, Rejects Drugmakers' Appeals
May 18, 2026
To date, the government has negotiated prices for 25 Medicare-covered drugs, including GLP-1 therapies like Ozempic, Rybelsus, and Wegovy, with a third negotiation round planned to push coverage toward about 40 drugs.
The program targets high-spending Medicare drugs and involves manufacturers in negotiations with CMS or withdrawal from Medicare, with potential penalties for non-compliance.
The Supreme Court rejected appeals from drugmakers challenging Medicare drug price negotiations, leaving lower-court rulings that dismissed the manufacturers’ claims intact.
By denying review, the Court did not address broader constitutional or statutory challenges, effectively preserving the status quo for now.
This decision pertains to challenges to the Inflation Reduction Act’s price-negotiation authority for Medicare drugs, with deals already taking effect under the program.
Endpoints News highlights related stories around the same period to provide broader context.
Negotiations have progressed across rounds, having already included 25 drugs and aiming for broader reach in a third round.
The ruling represents a closure or pause in the longer-running legal battle over the policy.
The article provides a link to the Supreme Court order document for the May 18, 2026 decision.
The piece, by John Wilkerson for STAT, emphasizes the broader implications for the pharmaceutical industry and Medicare policy.
Politically, the Inflation Reduction Act drew Republican opposition, while the Biden administration supported the negotiation authority, with no Republican votes for the Act in Congress.
Drugmakers argued the plan infringes Fifth Amendment due process and takings rights and violates First Amendment free speech, asserting CMS overstepped or delegated too much authority.
Summary based on 11 sources
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Sources

AP News • May 18, 2026
Supreme Court rejects appeals over Medicare price negotiations | AP News
The Washington Post • May 18, 2026
Supreme Court rejects appeals from drug manufacturers over Medicare price negotiations
Spectrum News • May 18, 2026
Supreme Court rejects appeals from drug manufacturers over Medicare price negotiations