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Trang chủ » Merck files lawsuit against US government to impede Medicare drug pricing discussion.

Merck files lawsuit against US government to impede Medicare drug pricing discussion.

Merck sues US government to halt Medicare drug price negotiation

Merck sues US government to halt Medicare drug price negotiation

Pharmaceutical company Merck & Co. has filed a lawsuit against the US government in a bid to halt the Medicare drug price negotiation programme, which it claims violates Constitutional amendments. The move comes as the Biden administration seeks to save $25bn annually by 2031 through price negotiations for drugs paid for by Medicare,the government health plan for those aged 65 and over. However, drugmakers argue that such a loss of profits will force them to pull back on developing groundbreaking new treatments. Merck alleges that the law violates the part of the Fifth Amendment that requires the government to pay just compensation for private property taken for public use, and also claims that the law will force firms to sign agreements conceding that prices are fair, a violation of the First Amendment’s protections of free speech.

FAQs:

What is the Inflation Reduction Act?

The Inflation Reduction Act is a law aimed at reducing inflation in the US. Within the law, there exists a Medicare drug price negotiation programme which aims to save $25bn annually by 2031 through price negotiations for drugs paid for by Medicare, the government health plan for those aged 65 and over.

Why has Merck filed a lawsuit against the US Government?

Merck has filed a lawsuit against the US government in an effort to halt the Medicare drug price negotiation programme contained in the Inflation Reduction Act, which it argues violates the Fifth and First Amendments to the Constitution. Such a loss of profits for drugmakers, it claims, will force them to pull back on developing groundbreaking new treatments.

What is Merck’s argument?

As well as alleging the programme violates the part of the Fifth Amendment that requires the government to pay just compensation for private property taken for public use, Merck also claims that the law will force firms to sign agreements conceding that prices are fair, a violation of the First Amendment’s protections of free speech.

What are the implications of the lawsuit?

The first ever Medicare drug price reduction process is due to begin in September when CMS identifies its 10 most costly drugs. Following negotiations on that first wave of drugs, new prices will go into effect in 2026, which could cut industry sales by $4.8 billion in that first year. Merck’s top-selling drug, cancer immunotherapy Keytruda, could be subject to negotiations as soon as 2028.

Merck sues US government to halt Medicare drug price negotiation
Merck sues US government to halt Medicare drug price negotiation

Lawsuit by Merck against US government to prevent negotiation of drug prices under Medicare

On Tuesday, Merck & Co. filed a lawsuit against the US government seeking to stop the Medicare drug pricing negotiation program that is part of the Inflation Reduction Act. Merck argued that the law violates the Fifth and First Amendments of the Constitution. This is the first challenge by a drugmaker against the law, which the pharmaceutical industry claims will result in a loss of profits and hinder the development of groundbreaking new treatments. The Biden administration’s drug pricing reform aims to save $25 billion annually by 2031 through negotiations for drugs paid for by Medicare, the government health plan for those aged 65 and over. The lawsuit claims that drugmakers will be forced to negotiate prices for drugs at below-market rates, violating the part of the Fifth Amendment that requires the government to pay just compensation for private property taken for public use. Merck also argues that the law violates the First Amendment’s protections of free speech. Merck’s lawsuit was filed against the Department of Health & Human Services and CMS, as well as HHS Secretary Xavier Becerra and CMS Administrator Chiquita Brooks-LaSure. The case is expected to head to the Supreme Court, as issues in this area of the law are undecided.

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