The Biden administration‘s move to empower Medicare to negotiate drug prices for seniors has faced opposition from various pharmaceutical groups, leading to a series of lawsuits, Yahoo Finance News reported.
Pharmaceutical Groups On Medicare Drug Price Negotiation
The Pharmaceutical Research and Manufacturers of America (PhRMA), the National Infusion Center Association, and the Global Colon Cancer Association are among the organizations challenging the new policy.
The Inflation Reduction Act, which grants Medicare the authority to negotiate drug prices, has become a contentious issue in the pharmaceutical industry. Several lawsuits have been filed, to challenge the provisions of the act and protect pharmaceutical companies’ profits.
One of the key arguments presented in the lawsuit is that the Medicare negotiations with drugmakers violate the U.S. Constitution. The plaintiffs are seeking a court declaration of the program’s unconstitutionality.
Additionally, they aim to prevent the Department of Health and Human Services (HHS) from implementing the negotiations without ensuring adequate procedural protections for drug manufacturers.
Another concern raised by the lawsuit is the infringement on due process principles. The organizations argue that the policy denies pharmaceutical companies and the public the opportunity to provide input on the implementation of Medicare drug price negotiations. They claim that this lack of input violates fundamental rights.
The lawsuit also takes issue with the inclusion of an excise tax, which is perceived as a coercive measure to force drugmakers to accept government-mandated prices. The plaintiffs argue that such a tax constitutes an excessive fine, prohibited by the Eighth Amendment.
Groups On Medicare Drug Price Negotiation
The opposition from pharmaceutical groups is not limited to legal action. Industry leaders, including CEOs of companies such as Eli Lilly and Co, Pfizer Inc, and Merck & Co Inc, have expressed concerns about the potential impact of Medicare price negotiations on drug development.
They argue that the negotiations could impede innovation and hinder the development of life-saving medications.
The legal challenges and industry backlash reflect the significant impact that Medicare drug price negotiation can have on the pharmaceutical industry. As the lawsuits progress and debates continue, the outcome will shape the future of drug pricing policies and determine the balance between affordable healthcare for seniors and the interests of pharmaceutical companies.