Federal judge dismisses legal challenges to South Dakota drug discount law

By: John Hult

Outlets: South Dakota Searchlight

Published: August 10, 2026

Words: 640

Last Updated: 1 week, 1 day ago

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A judge has ruled in favor of a South Dakota law that helps rural healthcare providers buy discounted drugs and mark up their sale price to fill budget holes created by low Medicare and Medicaid reimbursement rates.

AbbVie, maker of the arthritis drug Humira, among other medications, sued the state in April 2025. The Chicago-based company argued that South Dakota lawmakers unconstitutionally regulated interstate commerce with Senate Bill 154, which they passed and …

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