For the sake of Floridians, Governor Ron DeSantis today issued Executive Order 22-164 to promote transparency in prescription drug pricing. With the implementation of these changes, Pharmacy Benefits Managers (PBMs) will be held responsible for the administration of insurance companies’ prescription medication benefits. Governor DeSantis is still dedicated to finding out how to provide prescription medications to Floridians safely and affordably.
“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 made steps to cut prescription medication costs for consumers, but these efforts are still being blocked by the federal government. The FDA has been examining the state’s historic Canadian Prescription Drug Importation programme for approximately 600 days.
The Agency for Health Care Administration (AHCA) submitted a Freedom of Information Act (FOIA) request to learn more about the progress of their proposal to cut prescription costs for Floridians, according to another announcement made today by Governor DeSantis. The FDA must be transparent about its review process, and Florida will keep them responsible to ensure that politics do not take precedence over patients.
Governor DeSantis gave AHCA the right to negotiate pricing for medications that are not permitted for importation, such as insulin and epinephrine, in reaction to the inactivity of the federal government. This will increase the need for Florida’s Canadian Prescription Drug Importation Program and provide the state another way to influence the cost of prescription medications for Floridians.