AstraZeneca sues US over Medicare drug price negotiation plans
AstraZeneca has sued the U.S. government to block a program that allows Medicare to negotiate lower drug prices, claiming that it would hinder the development of new medicines.
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Posted 8/25/2023, 4:29:00 PM
reuters.com
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AstraZeneca has sued US Health Secretary Xavier Becerra and CMS Administrator Chiquita Brooks-LaSure, claiming that certain provisions of the Inflation Reduction Act, which granted CMS negotiating powers, are unconstitutional and infringed upon the company's property rights.
The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.