Feb 2026 Drug Pricing Digest #2: Healthcare & Life Sciences | L&W LLP
TL/DR –
The U.S. Supreme Court ruled on February 20, 2026, that the International Emergency Economic Powers Act does not authorize the president to impose tariffs, a decision that will affect President Trump’s tariff policies. 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), which was challenged in court by the manufacturer of one of the drugs. On February 17, 2026, the Health Resources & Services Administration (HRSA) published a request for information regarding the 340B Rebate Model Pilot Program after a legal challenge caused the withdrawal of the previously announced rebate model.
“`html
Updates on Tariffs, Healthcare Reforms, and various Legislative Decisions
U.S. SUPREME COURT RULES AGAINST TRUMP’S TARIFFS
The Supreme Court of the United States on February 20, 2026, ruled against the International Emergency Economic Powers Act, arguing that it doesn’t give the President the authority to impose tariffs. It’s crucial to identify which of the tariffs announced by President Trump were based on this act, rather than other authorities.
Referenced by: Law360, Politico, BloombergLaw, BioWorld.
MANUFACTURER CONTESTS SELECTION OF DRUG UNDER IRA
As previously discussed in issue No. 65, on January 27, 2026, the Centers for Medicare & Medicaid Services (CMS) released the third set of drugs for negotiation under the Inflation Reduction Act (IRA). The manufacturer of a selected drug has legally contested the selection.
Referenced by: BloombergLaw, BioWorld, Law360.
CMS REVEALS MAXIMUM FAIR PRICE FOR IPAY 2027
As indicated in issue No. 60, CMS disclosed the maximum fair prices for the Initial Price Applicability Year (IPAY) 2027. The explanations for these prices have now been published by CMS.
Referenced by: PinkSheet.
TRUMP ADMINISTRATION DISCUSSES MFN LEGISLATION
The Trump health policy framework, as discussed in issue No. 64, urges Congress to legislate the most favored nation (MFN) agreements that manufacturers have established with the government. Administration officials are continuously debating the potential of legislating the MFN policy.
Referenced by: InsideHealthPolicy, BloombergLaw (first, second), RollCall, StatNews, PoliticoPro, PinkSheet.
Reportedly, several manufacturers not directly targeted by the Trump administration’s push for MFN deals are attempting to negotiate their own agreements with the government.
Referenced by: Reuters, StatNews.
STAKEHOLDERS DEBATE INTERNATIONAL IMPACT OF TRUMP’S MFN POLICIES
Stakeholders are still deliberating how Trump’s MFN policies might influence international markets. The Globe and Guard proposed regulations were examined in issue No. 62. The comment period for these proposed rules will conclude on February 23, 2026.
Referenced by: US Economic News