Federal Judge Rules North Dakota Drug Access Law Unconstitutional

A federal court in North Dakota has ruled that a state law aimed at expanding access to discounted medications is unconstitutional. In a written order, Daniel Traynor held that House Bill 1473 violates federal law and exceeds the state’s authority.

The legislation was designed to protect access to discounts under the federal 340B Drug Pricing Program, which requires pharmaceutical manufacturers to provide reduced-cost medications to healthcare providers serving low-income populations. The law sought to prevent drug manufacturers from limiting how these discounted drugs are distributed, including restricting the number of pharmacies hospitals could use.

Judge Traynor found that the statute conflicts with federal oversight of the 340B program and is therefore preempted under the Supremacy Clause of the U.S. Constitution. He also ruled that the law improperly regulates commerce beyond state borders, in violation of the Commerce Clause. The court further determined that the law interferes with conditions set by manufacturers to ensure compliance with federal requirements, including the use of claims data to verify eligibility.

The ruling arose from consolidated legal challenges brought by pharmaceutical companies including AbbVie and AstraZeneca, along with the trade group Pharmaceutical Research and Manufacturers of America. The court ordered that the law may not be enforced against certain parties, while proceedings related to AstraZeneca’s claims remain ongoing.

State officials have indicated that a decision on whether to appeal has not yet been made.