HHS Releases Report to Address High Drug Prices

In an effort to lower drug prices, the Department of Health and Human Services (HHS) released a report earlier this month entitled “Comprehensive Plan for Addressing High Drug Prices.”  The report outlines both legislative and administrative actions to lower drug pricing.

Proposals that would require legislative action include:

•    Medicare Part D reform, including a cap on catastrophic spending to protect beneficiaries from unaffordable out-of-pocket costs;
•    Legislation to slow price increases over time on existing drugs; and
•    Prohibition on “pay-for-delay” agreements and other anti-competitive practices by drug manufacturers.

In addition to the legislative approaches, the report outlines certain administrative actions aimed at promoting competition and reducing drug prices.  For instance, the report calls for the US Food and Drug Administration (FDA) to work with the US Patent and Trademark Office (USPTO), suggesting that such collaboration would “facilitate greater awareness of their complementary work and introduce efficiency into their respective workstreams.”  

HHS released the report in response to President Joe Biden’s July 9, 2021 executive order on promoting competition in the American economy, which demanded that top health officials rapidly devise a plan to cut spending on overpriced drugs.