President Joe Biden [Image courtesy of the White House]
President Joe Biden has signed an executive order that asks HHS’ Innovation Center to explore new strategies to reduce prescription drug costs.
The Affordable Care Act, passed on March 21, 2010, established HHS’ Innovation Center to explore new ways of paying for Medicare services.
The new executive order gives HHS 90 days to submit proposals to reduce prescription drug costs and expand Medicare beneficiaries’ access to new drug therapies.
The most recent executive order notes Americans pay an average of two to three times more on prescription drugs than those in other wealthy countries.
The executive order text notes that one-quarter of Americans taking prescription drugs struggle to afford them. In addition, almost one-third of American adults taking prescription drugs admit they have skipped doses, cut pills in half or have not filled prescriptions to save money.
CMS is currently testing state-based innovation models across the country.
Biden notes that the recent executive order builds on the drug pricing reforms contained in the Inflation Reduction Act.
The Inflation Reduction Act caps insulin costs for Medicare beneficiaries with diabetes. It also makes most vaccines free for Medicare recipients.
That legislation will reduce healthcare premiums for 13 million Americans by an average of $800 annually.
Republicans in Congress have vowed to repeal the Inflation Reduction Act.
In addition, the federal government has announced that millions of Social Security recipients will receive an average of 8.7% in 2023.
Ahead of the midterm elections, Biden has touted prescription drug pricing reforms.
In related news, Biden traveled to Irvine, California and Portland, Oregon, to kick off Medicare Open Enrollment and to provide an overview of the Inflation Reduction Act.
Biden promised to lower drug prices when campaigning for President.
In July, he signed an executive order to support generic and biosimilar competition while enabling Medicare to negotiate drug costs.
Biden has also explored importing prescription drugs from Canada.
His popularity rating has improved somewhat in recent months, hovering around 42%.