Pharmaceutical Lobbying Group Challenges Biden Administration Over Medicare Price Negotiations

The Pharmaceutical Research and Manufacturers of America (PhRMA), the National Infusion Center Association, and the Global Colon Cancer Association have filed a lawsuit against the Biden administration over Medicare's new powers to reduce drug prices for seniors.

The Inflation Reduction Act, which allows Medicare to negotiate drug prices, has faced four lawsuits challenging its provisions. The policy is anticipated to impact the pharmaceutical industry's profits.

The lawsuit argues that the Medicare negotiations with drugmakers violate the U.S. Constitution, CNBC reports, and requests the court to declare the program unconstitutional.

The groups are also seeking to prevent the Department of Health and Human Services (HHS) from implementing Medicare negotiations without adequate procedural protections for drug manufacturers.

In addition, the lawsuit contends that the policy infringes upon the principles of due process by denying pharmaceutical companies and the public the opportunity to provide input on implementing Medicare negotiations.

The organizations further contend that the provision incorporates a "crippling" excise tax designed to compel drugmakers into accepting government-mandated medicine prices, thus constituting an excessive fine prohibited by the Eighth Amendment.

Eli Lilly And Co LLY CEO David Ricks voiced his concerns about the potential impact of Medicare price negotiations on drug development.

Pfizer Inc's PFE CEO Albert Bourla called U.S. plans to negotiate drug prices for its Medicare health program "negotiation with a gun to your head," while, Merck & Co Inc MRK filed a lawsuit against the U.S. government to halt implementing the Medicare drug price negotiation program.

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