AARP Hearing Center
Millions of older Americans will be able to afford life-sustaining prescription drugs under a landmark law that for the first time allows Medicare to negotiate the prices of some expensive medications. That provision must be allowed to stand, AARP and AARP Foundation say in a legal brief filed Sept. 18 in a District of Columbia federal court.
Just as the negotiation process for the first 10 prescription drugs is getting underway under the Inflation Reduction Act (IRA), AARP has filed an amicus brief in a lawsuit brought against the U.S. Department of Health and Human Services (HHS) by pharmaceutical giant Merck & Co. The drugmaker is asking a federal judge to declare the historic Medicare negotiations provision unconstitutional.
The lawsuit is one of a growing number of legal challenges filed so far by drug companies and business groups in an attempt to derail the drug negotiation portion of the IRA.
Merck’s diabetes drug Januvia is among the first 10 medications slated for price negotiations. According to AARP, the list price of Januvia has increased by 275 percent since it entered the market in 2006, and the drug accounted for $21.6 billion in Medicare Part D spending between 2017 and May 2023.
Also filing lawsuits against the negotiation program are PhRMA (the drug industry’s trade association), the U.S. Chamber of Commerce, Bristol Myers Squibb Co., Johnson & Johnson, Astra Zeneca, Boehringer Ingelheim and Novartis Pharmaceuticals.
This is the second legal brief from AARP and AARP Foundation asking federal courts to maintain the provision of the new law that AARP and other advocates have long fought for. AARP filed an amicus brief in August urging an Ohio federal court to deny a request by the U.S. Chamber of Commerce to prevent the Centers for Medicare & Medicaid Services (CMS) from implementing the negotiation process. On Sept. 29, the court denied the chamber’s request, which means the Medicare prescription drug negotiations process can proceed. Negotiations are scheduled to get underway in October, with negotiated prices to take effect in 2026.
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