Eli Lilly & Co., Pfizer Inc., and other major pharmaceutical companies have joined forces to oppose the Medicare agency’s plan to negotiate drug prices. The companies, which also include Johnson & Johnson, Sanofi SA, Bausch Health Companies Inc., and the Biotechnology Innovation Organization, have filed a joint brief in support of Teva Pharmaceuticals Inc.’s suit against the Centers for Medicare & Medicaid Services (CMS) over the plan.
The Biden administration’s plan, which was introduced last year, allows the government to negotiate prices for certain high-cost Medicare Part B drugs. The opponents of the plan, including the pharmaceutical companies, argue that it violates federal laws and poses a threat to the industry’s innovative capabilities.
The main issue at stake is the process by which CMS will select the drugs to be included in the price-negotiation program. The companies are seeking to block the plan, which they believe is overly broad and could lead to the government picking and choosing which drugs to cover, potentially stifling innovation.
The proposed brief was filed on March 14 and argues that the government’s plan exceeds its authority under the Social Security Act and the Administrative Procedure Act. The brief also claims that the plan could lead to a decrease in investment in research and development, as well as a reduction in the number of treatments and cures available to patients.
The pharmaceutical companies’ opposition to the plan highlights the ongoing debate over the cost of healthcare in the United States and the role of the government in regulating the pharmaceutical industry. While the government’s plan may aim to reduce healthcare costs, the industry is concerned that it could have unintended consequences, such as stifling innovation and reducing access to life-saving treatments.
Overall, the showdown between the pharmaceutical companies and the government over the drug price negotiation plan is a significant development in the ongoing discussion about the future of healthcare in the United States. The outcome of the case is closely watched by stakeholders in the healthcare industry, who are waiting to see how the controversy will be resolved.