Tons of of 1199SEIU medical experts organized a rally and sat on Third Avenue, where some were arrested. They protested health care cuts in Governor Kathy Hochuls’ Medicare budget.
Lev Radin | Light Rocket | Getty Images
Medicare on Friday said it might allow drug companies to publicly discuss historic drug price negotiations in this system, waiving a requirement of confidentiality that the industry said violated the First Amendment in lawsuits filed this month.
In initial guidelines issued in March, Medicare prohibited the industry from publicly disclosing information concerning the lower price initially offered by the federal government for covered drugs, in addition to the federal government’s reasons for selecting that price point.
Medicare also prohibited companies from disclosing any verbal conversations through the negotiation period. It also obliged companies to destroy all information inside 30 days if the drug was not chosen for negotiation.
In revised guidelines released Friday, Medicare said the corporate “may select to publicly disclose information regarding ongoing negotiations at its discretion.”
The Inflation Reduction Act, passed last yr, authorized Medicare to negotiate prices directly with drug companies for the primary time. This system is a significant pillar of the Biden administration’s efforts to control rising drug prices within the US
MerckAmerican Chamber of Commerce, Bristol Myers Squibb and the industry lobby group Pharmaceutical Research and Manufacturers of America asked federal courts this month to declare drug price negotiations unconstitutional.
Merck, the chamber, and Bristol Myers Squibb argued of their lawsuits that Medicare imposed a gag order that effectively barred companies from publicly expressing disagreement with the federal government’s position in violation of the First Amendment.
The industry lawsuits, nonetheless, also deal with broader allegations that this system violates due process and the confiscation of personal property without just compensation under the Fifth Amendment to the US Structure.
Health and Social Services Secretary Xavier Becerra on Friday promised to proceed negotiations despite pharmaceutical industry lawsuits.
“Pharmaceutical companies have been making record profits for a long time,” Becerra said in an announcement. “Now they’re lining up to block the work of this administration to negotiate higher drug prices for our families.
“We will not be scared off,” Becerra said
By September, HHS will publish a listing of 10 high-priced drugs chosen for negotiation. The companies must determine whether to participate in negotiations in the next month.
Drug manufacturers who select not to participate face severe financial penalties. They’ll avoid these penalties by opting out of Medicare and Medicaid drug rebate programs.
The companies argued that dropping out of rebate programs is just not a viable alternative, as these programs account for nearly half of the country’s annual prescription drug spending.