Upholding Louisiana Act 358 and the 340B Drug Program

In this episode, the Fifth Circuit upheld Louisiana's Act 358, a law prohibiting drug companies from blocking the distribution of discounted medications to contract pharmacies. Several pharmaceutical manufacturers challenged the statute, arguing that it was preempted by federal law and violated various constitutional protections, including the Takings Clause and the Contracts Clause. The court rejected these claims, finding that the state law serves a legitimate public interest in expanding healthcare access without conflicting with the federal 340B Program. Additionally, the judges determined that the law was not unconstitutionally vague and functioned within the state’s traditional police powers. Finally, the court ruled that a private primary care association should not have been allowed to intervene in the case because the state Attorney General already provided adequate representation.