Merck Challenges Biden Administration with Lawsuit Over Medicare's Drug Price Negotiation Powers

June 07, 2023

Merck, a global drugmaker, has filed a lawsuit against the Biden administration over Medicare's new powers to reduce drug prices for seniors. The company claims the negotiation process is unfair and unconstitutional, accusing the government of extortion. Merck argues that the Inflation Reduction Act forces companies to participate in a program that violates their rights and presents a false notion of fair prices. Medicare will select 10 drugs for price negotiations, and Merck expects some of its key drugs to be included. The negotiation process will expand to cover more drugs in subsequent years.

William Lemanske