A federal judge in Washington, D.C. dismissed Merck’s lawsuit challenging the government’s authority to negotiate Medicare drug prices. This ruling upholds a central provision of the Inflation Reduction Act.
Judge Colleen Kollar-Kotelly denied Merck’s motion for summary judgment and granted the government’s request. The decision deals a significant blow to pharmaceutical industry efforts to dismantle the program.
Merck initiated the first legal challenge against the program in 2023. The company argued the mandate violated First and Fifth Amendment rights regarding compelled speech and property compensation.
The court ruled that Merck’s participation in Medicare is voluntary, making the negotiation process constitutional. This decision follows several other court rulings that rejected similar challenges from drug manufacturers.