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PhRMAs sues over Medicare drug pricing provisions

Every time the government passes a law or regulation to provide a resolution to our impossible health system, there is a period between passage and going live. During that time, the sector of the health industry affected mounts legal challenges or creates other tactics to frustrate or prevent entirely the adverse effects to its business.


Case In Point: One provision of the 2022 Inflation Reduction Act bill finally authorizes Medicare to negotiate the price of high-cost prescription drugs. Seniors will see the new prices on the first 10 Medicare Part D drugs starting in September of this year.


State of Play: The Pharmaceutical Research and Manufacturers of America, the National Infusion Center Association, and the Global Colon Cancer Association (together known as PharMA), was filed June 21, 2023 in federal district court in Texas. This is the last suit (so far) following three others filed by Merck, Bristol Myers Squibb, and the US Chamber of Commerce.


Each suit was filed in a different federal court with difference reasons why the provision should be enjoined (stopped from going into effect until the legal challenges are resolved).

Why it Matters: By claiming different multiple reasons in each case, different from those in the other cases, there is a chance at least one will be a winner. If the plaintiffs can prevail in at least one of the courts, there will be a national-wide injunction against the provision going into effect.


Bottom Line: It could take years for the case(s) to be resolved. The pharmaceutical industry will keep escalating prices, and seniors will pay dearly for drugs. If they can. For more see https://tinyurl.com/ycx8rsf3

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