Lowering Prescription Drug Costs for Americans

[Federal Register Volume 87, Number 201 (Wednesday, October 19, 2022)]

[Presidential Documents]

[Pages 63399-63400]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2022-22834]

Presidential Documents

Federal Register / Vol. 87, No. 201 / Wednesday, October 19, 2022 /

Presidential Documents

[[Page 63399]]

Executive Order 14087 of October 14, 2022

Lowering Prescription Drug Costs for Americans

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, it is hereby ordered as follows:

Section 1. Policy. Too many Americans face challenges

paying for prescription drugs. On average, Americans

pay two to three times as much as people in other

countries for prescription drugs, and one in four

Americans who take prescription drugs struggle to

afford their medications. Nearly 3 in 10 American

adults who take prescription drugs say that they have

skipped doses, cut pills in half, or not filled

prescriptions due to cost.

On July 9, 2021, I signed Executive Order 14036

(Promoting Competition in the American Economy), which

directed various actions in pursuit of my

Administration's policy to improve competition,

increase wages, and reduce prices for prescription

drugs, among other goods and services. In response to

Executive Order 14036, the Department of Health and

Human Services (HHS) submitted a report to the White

House Competition Council calling for bold legislative

and administrative actions to lower drug prices.

increase wages, and reduce prices for prescription

drugs, among other goods and services. In response to

Executive Order 14036, the Department of Health and

Human Services (HHS) submitted a report to the White

House Competition Council calling for bold legislative

and administrative actions to lower drug prices.

On August 16, 2022, I signed Public Law 117-169,

commonly referred to as the Inflation Reduction Act of

2022 (IRA), which will lower the cost of prescription

drugs and save millions of Americans hundreds or

thousands of dollars per year. The IRA will protect

Medicare beneficiaries from catastrophic drug costs by

phasing in a cap for out-of-pocket costs at the

pharmacy and establishing a $35 monthly cap per

prescription for insulin covered by a Medicare

prescription drug plan and insulin delivered through

traditional pumps. Starting this January, Medicare

beneficiaries with prescription drug coverage will pay

$0 out of pocket for recommended adult vaccines

(including the shingles vaccine). The IRA will also

require certain companies to pay Medicare rebates if

they increase the prices of drugs used by Medicare

beneficiaries faster than the rate of inflation. In

addition, the Secretary of HHS (Secretary) will be able

to negotiate prices for selected high-cost prescription

drugs for Medicare beneficiaries for the first time

ever. Following the passage of the IRA, HHS has taken

critical steps to swiftly implement these historic

provisions in order to deliver results and lower health

care costs for the American people.

to negotiate prices for selected high-cost prescription

drugs for Medicare beneficiaries for the first time

ever. Following the passage of the IRA, HHS has taken

critical steps to swiftly implement these historic

provisions in order to deliver results and lower health

care costs for the American people.

As my Administration works to implement the IRA, it is

critical that we take additional actions to complement

the IRA and further drive down prescription drug costs.

Within HHS, the Center for Medicare and Medicaid

Innovation (``Innovation Center'') tests health care

payment and delivery models to improve health care

quality and make the delivery of health care more

efficient. In June 2022, the Innovation Center

announced a new model to improve cancer care and lower

health care costs for cancer patients, including

prescription drug costs. The Innovation Center provides

my Administration and the American people with a useful

set of tools to help lower health care costs and

improve quality of care, and its work can advance the

continued policy of my Administration to lower the cost

of prescription drugs.

Sec. 2. HHS Actions. In furtherance of the policy set

forth in section 1 of this order, the Secretary shall,

consistent with the criteria set out in 42 U.S.C.

1315a(b)(2), consider whether to select for testing by

the Innovation Center new health care payment and

delivery models that would lower

[[Page 63400]]

Sec. 2. HHS Actions. In furtherance of the policy set

forth in section 1 of this order, the Secretary shall,

consistent with the criteria set out in 42 U.S.C.

1315a(b)(2), consider whether to select for testing by

the Innovation Center new health care payment and

delivery models that would lower

[[Page 63400]]

drug costs and promote access to innovative drug

therapies for beneficiaries enrolled in the Medicare

and Medicaid programs, including models that may lead

to lower cost-sharing for commonly used drugs and

support value-based payment that promotes high-quality

care. The Secretary shall, not later than 90 days after

the date of this order, submit a report to the

Assistant to the President for Domestic Policy

enumerating and describing any models that the

Secretary has selected. The report shall also include

the Secretary's plan and timeline to test any such

models. Following the submission of the report, the

Secretary shall take appropriate actions to test any

health care payment and delivery models discussed in

the report.

Sec. 3. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

uthority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

October 14, 2022.

[FR Doc. 2022-22834

Filed 10-18-22; 8:45 am]

Billing code 3395-F3-P