Merck claimed the new program implemented as part the Inflation Reduction Act violates the Fifteenth and First Amendments of the US Constitution. It will force pharmaceutical companies negotiate drug prices below market rates. The company claimed that the new program was tantamount to “extortion” and violated the Fifteenth and First Amendments of the US Constitution.
By 2023, the Biden administration program will save US citizens 25 billion dollars annually through negotiations on drug prices paid by Medicare. Medicare is the government’s health insurance plan for those over 65. US citizens currently pay more than any other country for prescription medications.
Merck’s suit is the first time a pharmaceutical company has challenged the price-negotiation program. The company stated that they are willing to take the case to the Supreme Court if needed.
The White House condemned the lawsuit. The White House condemned the lawsuit. The Constitution does not prevent Medicare from negotiating a lower price for drugs .”