A federal court fully denied a summary judgment motion from Merck & Co., Inc. (NYSE:MRK) and granted the federal government’s cross-motion for summary judgment, upholding the Inflation Reduction Act’s Drug Price Negotiation Program.
Merck challenged the federal drug pricing framework on constitutional grounds, alleging uncompensated property takings under the Fifth Amendment, compelled speech under the First Amendment, and unconstitutional conditions on program participation.
Medicare Part D Pricing Exceptions
Congress originally established Medicare Part D in 2003 as a voluntary prescription drug benefit program that the Centers for Medicare and Medicaid Services administers through public-private partnerships.
Initial legislation barred federal officials from setting price structures or interfering in private price negotiations.
