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PhRMA sues Trump administration over Medicare drug price pilot

10/7/2026

The Pharmaceutical Research and Manufacturers of America filed a lawsuit against the Trump administration on Wednesday, challenging a new Medicare pilot program that links drug prices to those in other countries.

The trade group asserts that the "most-favored nation" initiative exceeds the statutory authority granted to Medicare. The complaint was lodged in the U.S. District Court for the District of Columbia.

The program, designated as GLOBE, operates within Medicare Part B and aims to tie prescription costs to pricing standards found in peer nations.

PhRMA argues that the administration lacks the legal power to implement such a mechanism under current Medicare laws.

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