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Think the author of this post has the entities suing the Federal government wrong. It is the Dayton Chamber of Commerce suing, with the backing of the U.S. Chamber of Commerce:
US Chamber of Commerce sues over government's drug pricing power
By Jonathan Stempel - June 9, 2023June 9 (Reuters) - The U.S. Chamber of Commerce on Friday sued the federal government, challenging a new law that for the first time gives Medicare the power to negotiate drug prices with pharmaceutical companies.
In a complaint filed in federal court in Dayton, Ohio, the chamber said the pricing program violated drugmakers' due process rights under the U.S. Constitution by giving the government "unfettered discretion" to dictate maximum prices.
It also said the program would impose exorbitant penalties on drugmakers that don't accept those prices, and amounted to an ultimatum: "agree to whatever price the government names, or we'll smash up your business."
The U.S. Department of Health and Human Services administers Medicare through its Centers for Medicare & Medicaid Services.
A spokeswoman said the agency will vigorously defend the program, which is already helping lower healthcare costs for older adults and people with disabilities. "The law is on our side," she added.
Friday's lawsuit by the chamber, one of the most powerful U.S. business groups, came three days after Merck & Co (MRK.N) filed a similar lawsuit in Washington, D.C.
Both lawsuits contended that price controls would force drugmakers to pull back on developing new drugs, causing long-term harm to Americans and their health.
Other drugmakers have also objected to the pricing program, which is part of last year's Inflation Reduction Act. Pricing changes following negotiations on 10 costly drugs selected by CMS would take effect in 2026.
Americans pay more for prescription drugs than prices in any other country.
The Biden administration hopes to save $25 billion annually by 2031 by having Medicare, the government health plan for people 65 and over, negotiate prices.
White House spokeswoman Karine Jean-Pierre said on Tuesday the government was confident it would win the Merck case.
"There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices," she said.
The chamber also warned that allowing the pricing program would set a bad precedent.
"After all, if the government can impose price controls in the pharmaceutical industry, why not elsewhere?" Chief Policy Officer Neil Bradley said in a statement.
The case is Dayton Area Chamber of Commerce et al v Becerra et al, U.S. District Court, Southern District of Ohio, No. 23-00156.
Now up to 4 Pharma/Chamber of Commerse lawsuits contesting Medicare drug price negotiation.
Pharmaceutical trade group sues US over Medicare drug price negotiation plans
NEW YORK, June 21 (Reuters) - The Pharmaceutical Research and Manufacturers of America (PhRMA), the leading industry lobby group, and two other organizations on Wednesday said they were suing the U.S. government to block enforcement of a program that gives Medicare the power to negotiate drug prices.
In a complaint filed in a federal court in Texas, PhRMA along with the National Infusion Center Association and the Global Colon Cancer Association, which counts PhRMA and some drug companies as members, said the drug price negotiation program was unconstitutional.
This marks the fourth lawsuit challenging the law, which is part of President Joe Biden’s signature Inflation Reduction Act (IRA), after separate legal challenges by Merck & Co (MRK.N), Bristol Myers Squibb (BMY.N), and the influential business group the U.S. Chamber of Commerce.
The pharmaceutical industry claims negotiating prices of its products with the government health plan for Americans age 65 and older will curtail profits and compel them to pull back on developing groundbreaking new treatments.
PhRMA represents many of the largest pharmaceutical companies in the world, including Merck and Bristol Myers.
Americans pay more for prescription medicines than any other country. The Biden administration's drug pricing reform aims to save $25 billion annually by 2031 through price negotiations for the drugs most costly to Medicare.
The latest lawsuit argues that the "unrestrained authority" given to the Department for Health and Human Services (HHS) by Congress conflicts with the United States' separation-of-power principle.
"Congress took a series of unconstitutional shortcuts, giving the executive branch the open ended task of replacing market based prices in Medicare with an entirely new set of prices at the (Medicare) agency's own choosing," PhRMA general counsel James Stansel said at a press conference.
The lawsuit also contends that the price negotiation program violates the U.S. Constitution's Eight Amendment, which protects against excessive fines, and Fifth Amendment by exempting key decisions from public input.
PhRMA and the other two groups are seeking an injunction against the price caps and a declaration that the IRA's price negotiation is unconstitutional.
The negotiations are scheduled to start in September after the agency that runs Medicare and Medicaid releases its list of 10 costly drugs initially selected for the process, with the agreed prices taking effect in 2026.
The suits challenging the plan have been filed in four different federal courts, with Merck's in Washington, D.C., the Chamber of Commerce in Ohio and Bristol Myers' in New Jersey.
In response to the previous lawsuits, the White House said there is nothing in the U.S. Constitution that prevents Medicare from negotiating lower drug prices.
A spokesperson for HHS on Wednesday said the law is on its side.
“As the (HHS) secretary has already made clear, we will vigorously defend the president’s drug price negotiation law, which is already helping to lower healthcare costs for seniors and people with disabilities."
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