Frier Levitt Partner Jesse Dresser was recently quoted in an NJBIZ article “Despite Lawsuits, NJ Drugmakers Take Part in Medicare Negotiations” by Kimberly Redmond.
The article discusses New Jersey’s major pharmaceutical companies participating in price-setting negotiations, despite legal opposition to the Biden administration’s Medicare Drug Price Negotiation Program. The program, part of President Biden’s Inflation Reduction Act, aims to alleviate healthcare costs by enabling Medicare to influence drug prices for the first time.
The article sheds light on several pharma giants that have taken legal action over the drug pricing requirements. The lawsuits differ in specifics, but collectively claim that the government is exceeding its authority, primarily questioning the constitutionality of the program under the First and Fifth amendments. Jesse explains that success in legal challenges may hinge on the pharmaceutical companies’ ability to argue for their “right” to participate in Medicare. He said, “The complaints raise claims of violations of the Fifth Amendment’s prohibition on government ‘takings,’ violations of the First Amendment by ‘compelling’ drugmakers to endorse speech they disagree with, violations of the Eighth Amendment’s prohibition on excessive fines, violations of due process requirement, and violations of the separation of powers by Congress delegating legislative authority to an executive agency.”
Jesse further shares his legal insights on the matter stating, “The suits take a broad approach, raising a variety of constitutional and legal arguments, in addition to substantial policy arguments. The cases have been brought in varied jurisdictions across the country (including four in New Jersey), with one potential goal of seeking a ‘circuit split’ that would result in a faster review by the Supreme Court.”
To read the full article along with the rest of Jesse’s insights, visit: https://njbiz.com/despite-lawsuits-nj-drugmakers-take-part-in-medicare-negotiations/
