White House issues executive order on drug pricing

The White House April 15 released an executive order directing federal agencies to undertake a broad range of tasks aimed at reducing the costs of prescription drugs.  

Among the tasks, the order directs:  

•    The Department of Health and Human Services to ensure within 90 days grants to federally funded health centers are conditioned upon offering insulin and injectable epinephrine at or below the discounted price paid by the health center grantee or sub-grantee under the 340B Prescription Drug Program to eligible patients.  
•    HHS to evaluate and propose regulations, as appropriate, within 180 days to ensure payment within Medicare is not encouraging a shift in drug administration volume away from physician office settings to hospital outpatient departments.  
•    HHS to carry out within 180 days an acquisition cost survey for covered outpatient drugs at hospital outpatient departments. HHS must then propose any appropriate adjustments consistent with budget neutrality provisions. 
•    HHS to develop and implement rulemaking within 60 days for a new payment model for high-cost prescription drugs. 

In a statement, Lisa Kidder Hrobsky, AHA senior vice president of advocacy and political affairs, said, “The AHA welcomes President Trump and his Administration focusing on the high price of drugs. As major purchasers of drugs for patient care, hospitals and health systems have strained under their rising prices. 
 
“However, we continue to strongly oppose site-neutral policies that do not account for the unique circumstances of providing care in the hospital outpatient setting, where patients are demonstrably sicker and require more complex care. In addition, hospitals and health systems are the providers of 24/7, 365 days a year care to their patients and provide a wide range of services that allow for healthy communities.   
 
“Finally, 340B is an essential program that helps hospitals advance health in communities across the country. We will work closely with the Administration to convey the critical role 340B plays for patients and communities, especially those in rural and other medically underserved areas.”