May 10, 2023
Life Sciences | Tea Leaves
  • Some of the world’s biggest drugmakers are laying legal groundwork to fight the U.S. plan to negotiate drug prices for its Medicare health coverage, including the argument that a ban against speaking about these talks violates constitutional rights, according to six industry sources. The first-ever Medicare drug price reduction process begins in September when the Centers for Medicare and Medicaid Services (CMS) identifies its 10 most costly drugs. Following negotiations on that first wave of drugs, new prices will go into effect in 2026, when the agency could cut $4.8 billion in industry sales.Medicare’s guidance includes rules that forbid drugmakers from talking about the negotiations and imposes fines of $1 million a day for violations. Those could be challenged under the U.S. Constitution’s First and Eighth Amendments protecting freedom of speech and against excessive fines, respectively, said three sources representing drugmakers. (Article here)