Lowering Prescription Drug Costs for Americans
Headline: Health Department Directed to Test Models to Lower Drug Costs
What it does: The Health Department must select, report on, and test payment and delivery models to lower drug costs within 90 days.
- May reduce out-of-pocket costs for people on Medicare and Medicaid.
- Could lower copays for commonly used drugs through new payment models.
- Requires a public report and testing timeline from the Health Department within 90 days.
Summary
The order directs the Department of Health and Human Services to consider and select new payment and delivery models that could lower prescription drug costs and improve access to innovative therapies for people on Medicare and Medicaid. The department must submit a report within 90 days describing any chosen models and provide a plan and timeline to test them. After the report, the department will move forward to test the models through its Innovation Center. This work aims to reduce pharmacy costs and promote value-based care.
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