US Chamber of Commerce advances steps to block implementation of the drug pricing provisions in the Inflation Reduction Act

A motion for a preliminary injunction filed by the US Chamber of Commerce to prevent further implementation of the Medicare Drug Price Negotiation program is the latest in a series of legal challenges to the government’s price control scheme.

On July 12, 2023, the US Chamber of Commerce advanced its legal action against the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) Drug Price Negotiation program. The Chamber filed a motion for a preliminary injunction with a US district court in Ohio over the drug price control program established following authorization of the Inflation Reduction Act (IRA) in 2022.

How drug pricing provisions will work under the IRA and the wider implications for drug development, health care and health policy

Last month, the Chamber filed a lawsuit arguing the government’s price control scheme violates the First, Fifth, and Eighth Amendments. They also claim the scheme will be detrimental to many stakeholders, including patients themselves.

“We’re seeking timely relief before the government can further implement its illegal and arbitrary price control scheme. If allowed to go into effect, the scheme would harm not only US businesses but US patients – limiting access to medicine, deterring needed investment, and stifling innovation.” Andrew Varcoe, Deputy Chief Counsel at the US Chamber Litigation Center, explained in a statement.

In an accompanying article, Brad Watts and Katie Mahoney of the US Chamber of Commerce explain why the lobbying group are suing HHS and CMS.

“When the government caps prices, it caps innovation and endangers access to better treatments – harming patients the most. The new IRA provisions establish an artificial and arbitrary system for devising price caps that will jeopardize medical breakthroughs for individuals with life-threatening and chronic illnesses.”

The lawsuit by the US Chamber of Commerce is one of many recent filed by companies and organizations challenging the IRA. This week also saw Merck file a motion for summary judgment seeking a swifter decision without a trial on their IRA lawsuit filed last month.

The decision on the Chamber’s motion for a preliminary injunction is expected the coming weeks.