Newsletter
Healthcare & Life Sciences: Drug Pricing Digest — Number 66
February 23, 2026
Our Drug Pricing and Market Access team tracks recent developments in healthcare reform, the Medicaid Drug Rebate Program, the 340B Program, Medicare, and state law.
Inflation Reduction Act, Healthcare Reform, and General Developments
SUPREME COURT STRIKES DOWN TRUMP TARIFFS
On February 20, 2026, the Supreme Court held that the International Emergency Economic Powers Act “does not authorize the President to impose tariffs.” A key issue to watch is which of the tariffs that President Trump has announced were based on this statute, as opposed to relying on other authorities.
Sources: Law360, Politico, BloombergLaw, BioWorld.
MANUFACTURER CHALLENGES IRA DRUG SELECTION
As we discussed in issue No. 65 of this digest, on January 27, 2026, the Centers for Medicare & Medicaid Services (CMS) published the third set of drugs that will be subject to negotiation under the Inflation Reduction Act (IRA). The manufacturer of one of the selected drugs has challenged the selection in court.
Sources: BloombergLaw, BioWorld, Law360.
CMS PUBLISHES MAXIMUM FAIR PRICE EXPLANATIONS FOR 2027
As we discussed in issue No. 60 of this digest, CMS in November published the maximum fair prices for Initial Price Applicability Year (IPAY) 2027. CMS has now published the explanations of those IPAY 2027 prices.
Source: PinkSheet.
TRUMP ADMINISTRATION CONTINUES DISCUSSION OF MFN LEGISLATION
The Trump health policy framework, which we discussed in issue No. 64 of this digest, calls on Congress to codify the most favored nation (MFN) deals that manufacturers have entered into with the government. Administration officials are continuing to discuss the possibility of legislation to codify the MFN policy.
Sources: InsideHealthPolicy, BloombergLaw (first, second), RollCall, StatNews, PoliticoPro, PinkSheet.
Reportedly, some manufacturers that were not targeted directly by the Trump administration’s push for MFN deals are attempting to negotiate their own agreements with the government.
STAKEHOLDERS DISCUSS INTERNATIONAL MFN IMPACT
Stakeholders continue to discuss how the Trump MFN policies could impact international markets. We discussed the Globe and Guard proposed rules in issue No. 62 of this digest. The comment period for these proposed rules closes on February 23, 2026.
Sources: PinkSheet, Reuters, InsideHealthPolicy.
GAO ISSUES REPORT ON MARCH-IN RIGHT DRAFT GUIDANCE
On February 18, 2026, the Government Accountability Office (GAO) published a report analyzing draft guidance concerning march-in rights. The National Institute of Standards and Technology (NIST) had published the draft guidance in 2023, which proposed that the government could consider the price of a product when deciding whether to exercise march-in rights. We discussed the 2023 draft guidance on episode No. 6 of the Drug Pricing and Market Access podcast.
Source: BioWorld.
Medicaid Drug Rebate Program (MDRP)
No developments to report.
340B Program
HRSA RESTARTS 340B REBATE MODEL PROCESS
On February 17, 2026, the Health Resources & Services Administration (HRSA) published a request for information regarding the 340B Rebate Model Pilot Program. Responses are due March 19, 2026. As reported in issue No. 65 of this digest, HRSA had withdrawn the previously announced rebate model in response to a legal challenge brought by hospital groups.
Sources: BloombergLaw, InsideHealthPolicy, BioWorld, 340B Report (first, second, third, fourth).
ADDITIONAL STATES ADOPT CONTRACT PHARMACY LAWS
More states have enacted or proposed legislation that would bar drug manufacturers from restricting contract pharmacy access. Some bills would require covered entities to make disclosures regarding 340B discounts. We note that legislative action related to the 340B program may have occurred in other states but has not yet been reported in the trade press.
Source: 340B Report (first, second).
MANUFACTURER CHALLENGES TO STATE 340B LAWS CONTINUE
Drug manufacturer litigation challenging the 340B laws enacted by various states continues. The US Court of Appeals for the Fifth Circuit has rejected a manufacturer challenge of Louisiana’s 340B contract pharmacy law.
Sources: BloombergLaw, Law360 (first, second), 340B Report (first, second, third, fourth).
Medicare Part B
No developments to report.
Medicare Part D
No developments to report.
State Law Developments
No developments to report.
Endnotes
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