Pharma Giants Reluctantly Enter Medicare Price Negotiations

Several pharmaceutical companies, including Merck, AstraZeneca, Bristol Myers Squibb, and Boehringer Ingelheim, have reluctantly agreed to participate in negotiations over Medicare drug prices, despite their ongoing lawsuits against the federal government. These companies manufacture prescription drugs that were among the first 10 selected for price negotiations under the Biden administration's Inflation Reduction Act. If they refuse to negotiate, they could face hefty fines or be forced to withdraw their drugs from Medicare and Medicaid markets. The negotiation period will end in August 2024, with the first round of negotiated prices taking effect in January 2026.