Merck sues to stop Biden's drug-negotiation program
Drugmaker
The drugmaker filed a suit against Health and Human Services Secretary
Drug-price negotiation was a key element in the Inflation Reduction Act that
In its complaint,
"It involves neither genuine 'negotiations' nor real 'agreements.' Rather, once HHS unilaterally selects a drug for inclusion in the program, its manufacturer is compelled to sign an 'agreement' promising to sell the drug to Medicare beneficiaries at whatever 'fair' price the agency dictates, which must represent at least a 25% to 60% discount," the complaint says. "This is not 'negotiation.' It is tantamount to extortion."
The lawsuit says the program violates Fifth Amendment protections against the government seizure of property without just compensation. It also alleges First Amendment compelled-speech doctrines by forcing drug companies to smile and pretend they took part in a voluntary process.
"This is political kabuki theater," the complaint says.
Under the Biden negotiation program, HHS will select 10 high-cost, single-source drugs from Medicare's Part D prescription benefit program this year and apply the negotiated prices by 2026. More drugs from Medicare Part D and the doctor-administered Part B program will be selected in subsequent years.
The
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"There is an actual controversy between the parties. One of
Other
The lawsuit is likely to draw opposition from advocates who fought for decades to see the type of price-setting that other countries enjoy.
However, conservative thinkers are siding with
"The Biden administration's Inflation Reduction Act doesn't provide for drug price negotiation as advertised," said
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