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  • Writer's pictureChristopher Meininger

Biden Administration’s Inflation Reduction Act (IRA) Faces New Court Challenge

On August 16th, 2022, President Biden signed the Inflation Reduction Act (IRA). In addition to other provisions, the IRA introduced price caps for certain prescription drugs and Part D spending for Medicare beneficiaries. The IRA also allows Medicare to negotiate prescription drug prices with pharmaceutical companies. These drug pricing negotiations begin this September and will focus on the 10 most costly drugs. Any resulting price changes would not go into effect until 2026.


This week, on June 6th, Reuters reported that pharmaceutical company Merck and Co. filed a lawsuit against multiple federal entities. The lawsuit states that the federal government is unconstitutionally extorting Merck’s businesses via the IRA.


Law experts say this may be the first of many federal lawsuits against Medicare and the IRA. Although no policy changes have occurred yet, pharmacists should stay informed on this developing story.


If you are interested in learning more about this story, Reuter’s article can be found here: https://www.reuters.com/business/healthcare-pharmaceuticals/merck-sues-us-government-halt-medicare-drug-price-negotiation-2023-06-06/




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