Drugmaker Merck sued the federal government over Medicare’s plans to negotiate lower drug prices on behalf of taxpayers and seniors under the Inflation Reduction Act.
Merck said on Tuesday the price negotiations are a “sham” and that it compels drugmakers to accept lower prices and violates the company’s constitutional rights.
The Biden administration is confident it will succeed in the courts against Merck & Co’s lawsuit filed on Tuesday.
For the first time, Medicare can negotiate lower prescription drug prices administered in doctors’ offices or purchased at the pharmacy.
The Inflation Reduction Act, passed by Congress last year, grants the federal health program that serves older adults and disabled people the authority to negotiate drug prices.
The Centers for Medicare and Medicaid Services will select the first 10 drugs to negotiate later this year, but price changes won’t begin until 2026.
In the lawsuit, Merck said drugmakers must accept price cuts of 25% to 60% or pay a “ruinous daily excise tax” for selected drugs.
Read More Here: Drugmaker Merck sues the Biden administration over Medicare’s drug price negotiations
