July 19, 2021
President Biden Signs Executive Order Targeting High Drug Prices
Last Friday, President Biden signed an executive order to address high drug prices while Congress works on legislation to allow Medicare to negotiate lower prices for prescription drugs.
The executive order:
- Authorizes federal agencies to import prescription drugs from Canada to lower prices;
- Directs the Department of Health and Human Services (HHS) to increase support for generic and biosimilar drugs, which provide low-cost options for patients;
- Directs HHS to issue a comprehensive plan within 45 days to combat high prescription drug prices and price gouging; and
- Encourages the FTC to ban “pay for delay” and similar tactics used by drug corporations to keep generic drugs off the market.
“President Biden understands that drug prices are far too high and we must rein in the pharmaceutical industry,” said Robert Roach, Jr., President of the Alliance. “But we urge Congress not to stop working to pass H.R. 3, the Lower Drug Prices Now Act, which is urgently needed.”
The executive order also directs HHS to issue rules within the next two months to implement a law passed in 2017 to allow hearing aids to be sold over the counter.