Merck Files a Lawsuit Over Medicare Pricing Powers

Merck filed a lawsuit against the Biden administration on Tuesday over Medicare’s ability to negotiate drug prices under the Inflation Reduction Act, calling the provision a “sham,” asking that it be declared unconstitutional and that any agreements reached by the program be blocked.

When the Inflation Reduction Act passed last year, it included the Medicare Drug Price Negotiation Program, giving Medicare for the first time the ability to directly negotiate drug prices with manufacturers.

This provision is expected to lower drug costs. Negotiations are set to occur throughout 2023 and 2024, and the effects of these agreements expected to be seen beginning in 2026.

Read the source article at thehill.com