(Sept. 18, 2020) – The White House released an executive order Sept. 13 aimed at high drug prices. The executive order directs the U.S. Department of Health and Human Services' secretary to immediately take steps to conduct rulemaking on a model that would test limiting Medicare payments for Part B drugs to no more than a "most-favored-nation" price, similar to the International Pricing Index model that CMS had proposed in late 2018. The executive order also directs the HHS secretary to develop and implement rulemaking on a payment model that would limit payments to a most-favored-nation price for Part D drugs with "insufficient competition." This proposed pricing approach is different than that in the IPI model in that the most-favored-nation price is defined as the lowest price, adjusted for volume and gross domestic product differences, among all Organization for Economic Cooperation and Development countries that have comparable per-capita GDPs.
KHA is monitoring the impact of the EO on the 340B program and will continue to advocate to protect the intent of the 340B program on behalf of our members and the communities they serve.