October 14, 2022
President Biden Signs Executive Order on Lowering Prescription Drug Costs
Order directs HHS to leverage the Center for Medicare and Medicaid Innovation to further drive down prescription drug costs
On October 14, President Joe Biden signed an Executive Order (EO) that directs the Department of Health and Human Services (HHS) to explore additional administrative actions to lower prescription drug prices. Although light on specifics, the EO instructs HHS to consider additional healthcare payment and delivery models for testing through the Center for Medicare and Medicaid Innovation (CMMI) that may lead to lower cost-sharing for commonly used drugs and support value-based payment that promotes high-quality care. The EO then directs HHS to submit a report to the Assistant to the President for Domestic Policy, within 90 days, detailing any models the Secretary has selected, including the plan and timeline to test any such models.
The announcement comes as President Biden travels to Irvine, CA and Portland, OR to highlight the start of the Medicare Open Enrollment Season and the recent passage of the Inflation Reduction Act, which included significant changes to prescription drug pricing.
To read the text of the Executive Order, CLICK HERE.
To read a factsheet on the Executive Order, CLICK HERE.