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

By TOM MURPHY
AP Health Writer

Merck is suing the federal government over a plan to negotiate Medicare drug prices, calling the program a sham equivalent to extortion. The drugmaker is seeking to halt the program, which was laid out in the Inflation Reduction Act and is expected to save taxpayers billions of dollars in the coming years. 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. Federal government representatives did not immediately respond to requests for comment.