Insight

Executive orders on prescription drug costs

Four Executive Orders (EO) described as action to deliver lower prescription drug prices to American Patients.

Larry Kocot

Larry Kocot

Principal, Advisory, KPMG LLP

+1 202-533-3674

On July 24, 2020, the Trump Administration signed four Executive Orders (EO) described as action to deliver lower prescription drug prices to American patients. Three of the EOs, direct the Secretary of the Department of Health and Human Services (HHS) to take actions to: (1) pass through discounts on insulin and injectable epinephrine to certain medically underserved patients; (2) allow states to develop safe drug importation programs; and (3) exclude rebates in the Part D program from anti-kickback safe harbor protections unless they are passed through in the prices charged at the point of sale (POS).  According to HHS, the fourth EO, announced but not issued to date, reportedly caps the most costly Medicare Part B prices at the level of any economically comparable OECD country, and will take effect in 30 days unless Congress acts.  Public reaction has generally ranged from skeptical to critical with respect to the prospects for successful implementation or impact of these policies.


 

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