Merck sues feds, calling plan to negotiate Medicare drug prices ‘extortion’

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Merck sues feds, calling plan to negotiate Medicare drug prices ‘extortion’
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The drugmaker said in a complaint filed Tuesday that the program does not involve genuine negotiation.

| The Associated Press

Merck said in a complaint filed Tuesday that the program does not involve genuine negotiation. Instead, it said the U.S. Department of Health and Human Services selects drugs to be included and then dictates the price, threatening drugmakers with “a ruinous daily excise tax” if they decline to agree.

Representatives of the federal agency did not immediately respond to requests for comment from The Associated Press. Merck says the program violates the U.S. Constitution in a couple ways. They include the Fifth Amendment’s requirement that the government pays “’just compensation’ if it takes ‘property’ for public use,” according to the complaint.

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