On October 14, 2022, US President Joe Biden announced: Executive Order on Lowering Prescription Drug Costs for AmericansIn the executive order, Biden outlined new payment and delivery models expected to bring down the price of prescription drugs, and focused on models that could be tested by the Center for Medicare and Medicaid Innovation (CMMI).
The executive order states, “Too many Americans face prescription drug payments. On average, Americans pay two to three times as much for prescription drugs as people in other 1 in 4 Americans who take prescription drugs have trouble affording them Nearly 3 in 10 American adults who take prescription drugs skip a dose because of the cost He said he had taken half a pill, or had not filled a prescription.”
Biden mentioned several actions he has attempted to bring drug prices down. Executive Order 14036, promoting competition in the American economy (in addition to other goods and services) aimed at improving competition and lowering the price of prescription drugs. In response to that order, the Department of Health and Human Services (HHS) submitted a report to the White House Competition Council on legislative and administrative actions to be taken to reduce drug prices.
of Inflation control law The executive order also “wiped out” Medicare beneficiaries by phasing in pharmacy prescription out-of-pocket cost caps and setting a $35 monthly cap for each insulin prescription covered by a Medicare prescription. It has been cited as protecting against “expensive drug costs”. Medication regimens and insulin delivered via conventional pumps. The law also requires that certain companies pay Medicare rebates if they raise the prices of drugs used by Medicare recipients faster than the rate of inflation.
In an executive order under the Cut Inflation Act, Biden tasked HHS Secretary Xavier Becerra with deciding on a new healthcare payment and delivery model for CMMI to test. To that end, the executive order requires Secretary Becerra to submit within 90 days to the Assistant to the President for Domestic Policy a report outlining the selected models, including a general plan and timeline for testing the models. is requesting
CMMI will then be tasked with testing new payment and delivery models that may reduce costs and facilitate access to new medications for Medicare and Medicaid recipients. This includes models that could reduce the cost burden of commonly used drugs and support value-based payments. .
Only time will tell what model CMMI will devise and whether it will ultimately change the out-of-pocket drug costs for patients.