WASHINGTON – The National Association of Chain Drug Stores has released a statement supporting President Donald Trump’s newly issued Executive Order, “Lowering Drug Prices by Once Again Putting Americans First,” which focuses on reforming pharmacy benefit managers. The Executive Order, signed on April 15, calls for increased transparency and accountability in the pharmaceutical supply chain—steps the NACDS says are long overdue.
The Executive Order recognized PBM reform as a key focus for President Trump from his initial term, emphasizing that “reform efforts ensured that government-mandated discounts were passed through to patients instead of being retained by middlemen.”
Bill Schiffner
NACDS President and CEO Steven C. Anderson welcomed the move. “NACDS appreciates this Executive Order’s additional scrutiny of the PBM middlemen and its focus on bringing about reforms needed desperately and immediately by the American people and by their trusted pharmacies. In two national media appearances within one week’s time last December, President Trump stressed the need to confront the middlemen’s abusive and self-enriching tactics, and seeing the Administration initiate further action within its first 100 days is great news. NACDS will continue to engage vigorously in the process of underscoring the problems of PBM tactics and detailing the solutions. Importantly, one critical step that the Administration can take right away is to direct the passage of – and sign into law – the sound reforms that are ready to go in the Congress and that have overwhelming support,” Anderson said.
“As NACDS declared in our recommendations to the Trump Administration – ‘Four Wins to Make America Healthy Again’ – it is time to stop the rip-off and to deliver PBM middleman reform. It is time to stop the dominant PBMs from inflating Americans’ drug prices, from barring access to Americans’ pharmacy of choice, and from forcing pharmacies out of business. The costs of inaction are soaring, with nearly four pharmacies closing every day and with hundreds of millions in patient savings unrealized since the end of last year.”
The Executive Order outlines specific policy steps, including a directive for the White House Domestic Policy Council, in collaboration with the Department of Health and Human Services and other federal bodies, to produce recommendations within 90 days on improving transparency and competitiveness within the pharmaceutical supply chain.
Additionally, within 180 days, the Department of Labor proposes new regulations to increase transparency into PBM compensation practices under the Employee Retirement Income Security Act (ERISA).
