As inflation skyrockets, it seems prices on everything are climbing – from groceries to lumber to airplane tickets. But in Florida, that trend may soon see a reversal when it comes to prescription drugs. On July 8th, Governor DeSantis signed Executive Order 22-164, which seeks to reduce prescription drug prices by promoting price transparency amongst pharmacy benefit managers (PBMs).
"Florida continues to lead the nation in ensuring accountability in the health care industry and in introducing reforms to combat rising prescription costs," Governor DeSantis said in a news release. "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."
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Pharmacy benefit managers work with manufacturers and pharmacies to set drug costs for health insurers. Though this process ostensibly brings down prices, in practice, many say costs have become inflated.
DeSantis' new order aims to bolster price transparency among PBMs, with the goal of ultimately bringing down prescription drug prices. To achieve this, the order requires that executive agencies who work with PBMs require them to meet certain data transparency rules. Contracts between PBMs and executive agencies must also prohibit certain practices, including spread pricing and reimbursement clawbacks. Executive agencies who have existing contracts with PBMs must update them to meet the new regulations, DeSantis' website says.
The order has received positive feedback from some in the medical field, including the CEO of the Florida Pharmacy Association, Michael Jackson, who said in a press release that he was "encouraged" by the new development, according to News-Press.
The Pharmaceutical Care Management Association, a national trade association for pharmacy benefit managers, said they were "looking forward to working with Governor DeSantis' administration in ensuring all Floridians have affordable access to their prescription drugs," according to Fox13.
Previous drug affordability legislation promoted by DeSantis includes the Canadian Prescription Importation program, which would permit the importation of cheaper prescription drugs from Canada. The program is currently awaiting FDA approval.
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