Drug companies have filed lawsuits in courts across the country challenging the Constitutionality of the new Inflation Reduction Act (IRA) of 2022. Four of these cases were filed in the U.S. District Court for the District of New Jersey.
NJ Federal Court sides in support of the IRA
On April 29, 2024, the federal court in the first of these New Jersey cases sided with the government and the arguments raised in amicus briefs filed by Flitter Milz attorneys Andy Milz and Jody Lopez-Jacobs, along with lawyers from Public Citizen and other top-notch public interest law firms. The amicus briefs asserted support of the US government’s effort to curb high drug prices.
The federal court issued an opinion dismissing the challenges to the IRA’s drug price cutting measures raised by the big drug companies Bristol Myers Squibb and Janssen Pharmaceuticals. Our amicus briefs can be found here: Bristol Myers Squibb; Novartis Pharmaceuticals; Novo Nordisk
“We’re gratified by the Court’s ruling in this case and happy to be part of a top-tier team that made it happen,” says Milz. “Whenever we can help consumers, particularly the elderly, save money on necessities, we consider it a job well done.”
The Inflation Reduction Act of 2022
The IRA contains several reforms designed to lower the high cost of prescription drugs and make them more accessible to patients, including seniors enrolled in Medicare. The program relies on a process in which the Department of Health and Human Services (HHS), which is responsible for implementing Medicare, and the manufacturer of selected drugs negotiate the prices at which drugs will be made available to Medicare providers and drug plans.
Other such challenges are still in litigation in New Jersey federal court and around the country.
