Biden's Drug Price Plan Faces Lawsuit

Global drugmaker Merck has filed a lawsuit against the Biden administration over Medicare's new powers to reduce drug prices for seniors. In its complaint, Merck criticized the negotiation process as a "sham" and accused the government of employing an unconstitutional scheme that violates the Fifth Amendment. The company claimed that the Department of Health and Human Services forces companies to agree to substantial discounts on drug prices under the threat of high excise taxes. Merck requested the U.S. District Court for the District of Columbia to block HHS from compelling the company to enter into any agreement under the program and to void any existing agreements. The drugmaker also argued that Medicare's new powers to negotiate prices infringe on its free speech rights under the First Amendment.