Drugmakers form new group to lobby on impact of Medicare drug price negotiation

WASHINGTON — A handful of drug companies have formed a group to present lawmakers with research on what the industry sees as the negative impacts of Medicare drug price negotiations, according to lobbying records.

The group is called the IRA Watchdog after the Inflation Reduction Act, which directed Medicare to negotiate the prices for some drugs. Its members are Merck, AstraZeneca, Bristol Myers Squibb Company, and Eli Lilly, according to lobbying disclosure records. The group describes itself as a “coalition analyzing the impact of Medicare Drug Price Negotiation on patients.” 

Drugmakers opposed Medicare drug price negotiation because they consider it government price-setting that discourages innovation. However, they support some of the other changes in the law, including caps on out-of-pocket spending for seniors.