The Inflation Reduction Act includes in it a provision that allows the government to set the price of medicine by allowing Medicare to “negotiate” a price with the drug manufactures when it is deems the price too high for “inflationary” reasons.” Merck is suing the government over the provision of the law and it is now working its way through the legal system on a collision course with SCOTUS, who must determine if, for the purpose of controlling inflation, the government can do something it could never legally do before (nor should it ever in the future), be allowed to set the price of markets. Should this precedent be allowed to be set, this writer has little doubt the government will expand its justification of price fixing until it controlled the whole market.
4 thoughts on “Merck Battles Government Over Price Fixing Law”