The U.S. Chamber of Commerce has taken legal action against the federal government, filing a lawsuit to contest a recent law granting Medicare the ability to negotiate drug prices with pharmaceutical companies, Your Content has learned.
The chamber argues that this pricing program infringes upon drugmakers’ due process rights, as it grants the government unrestricted power to dictate maximum prices. Furthermore, the program’s harsh penalties for non-compliance essentially coerce drugmakers into accepting government-set prices.
The U.S. Department of Health and Human Services, responsible for administering Medicare, has yet to provide a comment in response to the lawsuit.
This lawsuit, brought forth by one of the most influential U.S. business organizations, follows a similar legal challenge filed by Merck & Co three days prior in Washington, D.C.
Both lawsuits contend that implementing price controls will hinder the development of new drugs, thereby adversely affecting Americans’ health in the long run. Various other pharmaceutical companies have voiced objections to this pricing program, which forms a part of the Inflation Reduction Act passed last year.
Any pricing changes resulting from CMS-led negotiations on ten high-cost drugs will be enforced in 2026.
It is a well-known fact that Americans pay higher prices for prescription drugs compared to any other country. The Biden administration aims to save $25 billion annually by 2031 through Medicare’s negotiation of drug prices.
White House spokeswoman Karine Jean-Pierre expressed confidence in winning the Merck case, stating that there is no constitutional barrier preventing Medicare from engaging in such negotiations.
The chamber additionally cautioned that allowing the pricing program would establish an unfavorable precedent.
Neil Bradley, Chief Policy Officer, stated, “If the government can impose price controls in the pharmaceutical industry, why not elsewhere?” This case has been assigned the title Dayton Area Chamber of Commerce et al v Becerra et al and is pending in the U.S. District Court, Southern District of Ohio, under the case number 23-00156, according to U.S. News.
—
Your Content for the latest updates. Have a story or news tip? Contact our 24/7 newsroom at 833.336.8013 or e-mail our tip line: [email protected]