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June 16, 2023

HHS Faces Additional Suits Over Inflation Reduction Act’s Drug Price Control Program

On June 9, 2023, the Dayton Area Chamber of Commerce, Ohio Chamber of Commerce, Michigan Chamber of Commerce and the U.S. Chamber of Commerce filed suit against HHS Secretary Xavier Becerra, HHS, CMS Administrator Chiquita Brooks-Lasure, and CMS in the U.S. District Court for the Southern District of Ohio.  The suit alleges that the Inflation Reduction Act’s “Drug Price Negotiation Program” does not involve a negotiation at all, but instead forces drug manufacturers to accept HHS’ determined “maximum fair price” or face a tax penalty of up to 19 times the daily gross sales of the drugs.  Merck & Co was the first drug maker to file suit against HHS in the U.S. District Court for the District of Columbia on June 6, 2023.   

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