Governor Ron DeSantis announced Executive Order 22-164 today in order to increase transparency in prescription expenses for Floridians. This order will guarantee that changes in place to keep Pharmacy Benefits Managers (PBMs) responsible when administering prescription medication benefits for insurance companies are implemented. Governor DeSantis remains dedicated to exploring solutions to provide Floridians with safe, affordable prescription drugs.
“Florida continues to lead the nation in ensuring accountability in the health care industry and in introducing reforms to combat rising prescriptions costs,” said Governor Ron DeSantis. “This executive order requires accountability and transparency for pharmaceutical middlemen when doing business with the state, thereby reducing the upward pressure on prescription drug costs.”
“For far too long leaders have chosen the path of inaction, rather than action, and fallen victim to a pharmaceutical system driven by drug companies rather than consumers,” said Agency for Health Care Administration Secretary Simone Marstiller. “Fortunately, Governor DeSantis leads with principle, always putting Floridians first and today’s actions will further this commitment by providing insight into the FDA’s review process and all agency health care contracts through the end of the decade.”
The Executive Order directs all executive agencies to include provisions in all future contracts and solicitations with these PBMs, services that include the following:
- Prohibit spread pricing for all PBMs;
- Prohibit reimbursement clawbacks for all PBMs;
- Directs agencies to include data transparency and reporting requirements, including a review of all rebates, payments, and relationships between pharmacies, insurers, and manufacturers; and
- Directs all impacted agencies to amend all contracts to the extent feasible with these same provisions.
A copy of Executive Order 22-164 can be found HERE.
Florida has already taken steps to reduce the cost of prescription drugs for consumers, but these efforts have been stymied by the federal government. The FDA has been reviewing the state’s historic Canadian Prescription Drug Importation programme for approximately 600 days.
Governor DeSantis also stated today that the Agency for Health Care Administration (AHCA) has filed a Freedom of Information Act (FOIA) request to learn more about the progress of their proposal to reduce prescription costs for Floridians. The FDA must be transparent about their review process, and Florida will keep them responsible to ensure that politics do not take precedence over people.
Governor DeSantis granted AHCA permission to negotiate rates for pharmaceuticals that are not eligible for importation, including as insulin and epinephrine, in reaction to federal government inactivity. This will increase demand for Florida’s Canadian Prescription Drug Importation Program and provide Floridians another way to influence the pricing of prescription drugs.