Big Pharma: We're Going To Sue Medicare Over Price Regulations
The Young Turks・2 minutes read
Pharmaceutical companies are resisting Medicare's new price negotiation abilities, introduced by Biden's legislation, targeting the most expensive drugs and potentially reducing industry sales by $4.8 billion. Despite the limited impact on Medicare beneficiaries, key drugs like Eliquis and Pfizer's breast cancer treatment are likely to be included, prompting legal challenges from Big Pharma to maintain control over drug pricing and profits.
Insights
- Pharmaceutical companies are actively working to circumvent new regulations allowing Medicare to negotiate drug prices, focusing on legal challenges and delay tactics to protect their control over pricing and profits, despite the reduced impact on Medicare recipients.
- The legislation permitting Medicare to negotiate drug prices, though significantly weakened from its original intent, is set to target the ten most expensive drugs initially, potentially reducing industry sales by $4.8 billion. Despite industry opposition, crucial medications like Eliquis and Pfizer's breast cancer drug are expected to be subject to negotiation.
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Recent questions
How are pharmaceutical companies responding to new regulations on drug prices?
Pharmaceutical companies are strategizing to bypass new regulations allowing Medicare to negotiate drug prices, a result of Biden's inflation reduction act and a diluted version of his build back better agenda. The initial legislation aimed to enable Medicare to negotiate prices for all drugs, but the final version, passed by Democrats, is significantly weaker. Despite the limited impact on Medicare recipients, crucial drugs like Eliquis, Pfizer's breast cancer drug, and a leukemia treatment are likely to be negotiated. Big Pharma is already planning legal challenges to delay and potentially overturn the new regulations, citing concerns about compliance with Biden's legislation and the U.S. Constitution.
When does the first drug price negotiation process under Medicare begin?
The first drug price negotiation process under Medicare starts in September, targeting the 10 most expensive drugs, with new prices effective in 2026. This process has the potential to reduce industry sales by $4.8 billion. Despite the opposition from pharmaceutical companies, this negotiation process is a significant step towards controlling drug prices and ensuring more affordable healthcare for Americans.
Which drugs are likely to be negotiated under Medicare's price negotiation ability?
Crucial drugs like Eliquis, Pfizer's breast cancer drug, and a leukemia treatment are likely to be negotiated under Medicare's price negotiation ability. While the impact on Medicare recipients may be limited, the negotiation of prices for these essential medications could lead to more affordable options for patients in need.
Why do pharmaceutical companies oppose Medicare's price negotiation ability?
Pharmaceutical companies vehemently oppose Medicare's price negotiation ability, even for a small number of drugs, as it threatens their control over drug pricing and profits. They are concerned about the potential impact on their revenue and are planning legal challenges to delay and potentially overturn the new regulations. By resisting these changes, pharmaceutical companies aim to maintain their dominance in the industry and protect their financial interests.
How do pharmaceutical companies plan to challenge the new regulations on drug prices?
Big Pharma is already planning legal challenges to delay and potentially overturn the new regulations on drug prices. They cite concerns about compliance with Biden's legislation and the U.S. Constitution as reasons for their opposition. Through lawsuits and delay tactics, pharmaceutical companies aim to maintain their control over drug pricing and profits, despite the push for more affordable healthcare options for Americans.
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Summary
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Pharma fights Medicare drug price negotiation.
- Pharmaceutical companies are strategizing to bypass new regulations allowing Medicare to negotiate drug prices, a result of Biden's inflation reduction act and a diluted version of his build back better agenda.
- The initial legislation aimed to enable Medicare to negotiate prices for all drugs, but the final version, passed by Democrats, is significantly weaker. The first drug price negotiation process under Medicare starts in September, targeting the 10 most expensive drugs, with new prices effective in 2026, potentially reducing industry sales by $4.8 billion.
- Despite the limited impact on Medicare recipients, crucial drugs like Eliquis, Pfizer's breast cancer drug, and a leukemia treatment are likely to be negotiated. Pharmaceutical companies vehemently oppose Medicare's price negotiation ability, even for a small number of drugs.
- Big Pharma is already planning legal challenges to delay and potentially overturn the new regulations, citing concerns about compliance with Biden's legislation and the U.S. Constitution. They aim to use lawsuits and delay tactics to maintain their control over drug pricing and profits.
