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. The Chicago-based company argued that South Dakota lawmakers unconstitutionally regulated interstate commerce with Senate Bill 154, which they passed and Gov. South Dakota among states to restrict drug company contractingThe 340B program initially required discounts for providers that serve mostly Medicaid clients. It was expanded to “sole providers” under the Affordable Care Act in 2010, which opened it up to rural healthcare providers in places like South Dakota. ADVERTISEMENTJudge: South Dakota law is constitutional, protects ‘legitimate interest’The ruling from U.S. District Judge Roberto Lange dismissed all three lawsuits against South Dakota.