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Drug Pricing Reform: Now It Is HHS Secretary Becerra’s Turn

Executive Summary

After months of reticence about his Administration's plans for tackling drug pricing, Biden's executive order offers some clues about what might be in store and what kind of timeline they are working with. 

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CMS Innovation Center Exploring ‘Array’ Of Cost-Lowering Medicare Payment Models

CMMI payment demonstrations are viewed as way of skirting statutory obstacles to experimenting with new approaches to reimbursement and could lead to significant drug pricing reforms if legislative efforts fail. However, HHS is not signaling an intent to pursue transformational new models at this point.

White House Reticent On Drug Pricing Regulatory Plan With Legislative Efforts In Motion

HHS plan to be publicly released in coming weeks, White House official says. Meanwhile the US House passed a resolution clearing the way for consideration of a second infrastructure package that could include major drug pricing reforms such as Medicare price negotiation as cost offsets.

Biden Pitches Medicare Price Negotiations That Acknowledge R&D Costs, Allow ‘Significant’ Profits

The US president’s remarks appear aimed at drawing more support for the negotiation policy. But critics are likely to be skeptical about whether such a process could result in a “fair” price.

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