In June, several federal litigations were filed against the Inflation Reduction Act’s “maximum fair price” (MFP) mechanism: Merck filed litigation in D.C., the U.S. Chamber of Commerce in Ohio, Bristol Myers Squibb in New Jersey, and, finally, the National Infusion Center Association (NICA), PhRMA, and the Global Colon Cancer Association jointly filed in Texas.
All of the complaints assert constitutional violations related to Medicare’s new price-setting process, which will fully go into effect for selected Part D drugs in 2026. The first group of Part D drugs to be selected for the mechanism will be announced on September 1, 2023, which will likely trigger another round of litigation by some of the manufacturers of the medications on that list.
CSRO will closely monitor the outcome of these litigations to determine the impact on Part B medications, which will be subject to MFPs starting in 2028. In the meantime, the Centers for Medicare and Medicaid Services issued a revised implementation guidance related to the program at the very end of June, but that guidance does not resolve the constitutional concerns alleged in the complaints, so it is unlikely to have any impact on the litigation.
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