Biden yields, resumes drug price transparency enforcement.
The Biden administration has made a dramatic reversal in its stance on the enforcement of Transparency in Coverage (TiC) rules. After initially backing away from a legal battle over the Trump administration regulations, they have now been successfully sued by the Foundation for Government Accountability (FGA) to protect patients’ right to health care transparency.
The re-implemented rules are a game-changer, as they mandate the publication of prescription drug prices by group health plans and insurers. This provides crucial pricing information to consumers, empowering them to make informed decisions about their healthcare.
Following FGA’s lawsuit, the U.S. Departments of Health and Human Services (HHS), Labor, and Treasury have publicly rescinded their previous non-enforcement order. This order was deemed contrary to federal law, and the FAQ document issued by these departments confirms the reversal.
The Transparency in Coverage (TiC) rule is a crucial step towards empowering patients with the information they need to make informed health decisions. By promoting price transparency, it aims to enhance healthcare quality and foster free-market solutions.
FGA’s president and CEO, Tarren Bragdon, expressed his delight in a press release, emphasizing the victory’s significance for patients and their families. He stated, “When the Biden administration decided to take the side of health insurers and drug manufacturers, FGA decided to take the side of patients and their families. We stood up to the federal behemoth in court, and we won. Because of this victory, millions of Americans will have transparent access to the information they need to make informed health care decisions.”
“Washington gridlock can make major policy advancements difficult to come by. But FGA is committed to finding ways to make a positive impact across the country. That’s why we fight, and that’s why winning matters so much,” added Mr. Bragdon.
Background on Legal Battle
“The Biden administration broke the law when they prohibited agencies from enforcing the drug price transparency rule, and they knew it. That’s why they caved in response to FGA’s lawsuit by formally reversing their non-enforcement policy on drug price transparency before a federal judge compelled them to do so,” said Stewart Whitson, legal director at FGA.
The transparency rule mandates that group health plans and health insurers publish the prices of prescription drugs, ensuring consumers have complete pricing information. This move holds great potential for reducing the cost of medical care and ensuring fair pricing.
The FGA claimed in its March 23 press release announcing the lawsuit that the three departments had violated the rule by failing to enforce it.
In 2019, the Trump administration announced a regulation to increase Transparency in Coverage for healthcare, which was finalized in 2020. The section regarding the transparency of medicine prices was scheduled to go into effect on Jan. 1, 2022.
However, the Biden administration issued a FAQ guidance document to halt implementation of the rule. The FGA’s lawsuit asserts that this move skirted the requisite notice-and-comment procedures that must take place before making modifications to an existing regulation.
The pricing transparency regulation was expected to assist in reducing the cost of medical care. Unfortunately, the administration’s decision reportedly resulted in a lack of mitigation of a significant increase in the cost of more than 1,200 prescription medications during 2021 and 2022.
According to an HHS study released in September 2022, the average price increase for prescription medications was 31.6 percent. Some drugs in 2022 increased by more than $20,000, or 500 percent.
Bipartisan Support for Transparency
The House Committee on Oversight and Accountability demonstrated unusual bipartisanship during a May 23 hearing, where they jointly voiced concerns about alleged behind-the-scenes deal-making that resulted in higher consumer drug prices. Chairman James Comer (R-Ky.) and the committee convened their first hearing on pharmacy benefit managers (PBMs), advocating for increased accountability and transparency in their role as middlemen between drug manufacturers and pharmacies.
Almost two-and-a-half hours into the hearing, first-term Rep. Jasmine Crockett (D-Texas) said: “I applaud all my colleagues, which, you know, tend to be a little partisan. And so I didn’t know that we could actually agree on much of anything. And so, you know, today has revealed that miracles are still happening in the world.”
The Department of Health and Human Services did not immediately respond to The Epoch Times’s request for comment.
What was bidens new executive order?
Today, President Joe Biden signed an Executive Order on Addressing United States Investments In Certain National Security Technologies And Products In Countries Of Concernthat authorizes the Secretary of the Treasury to regulate certain U.S. investments into countries of concern in entities engaged in activities … Of Health and Human Services (HHS), Labor, and Treasury have agreed to enforce the TiC rules, which were finalized in October 2020 but were put on hold by the Biden administration in January 2021. These rules require group health plans and health insurance issuers to disclose the prices of prescription drugs to beneficiaries, including the negotiated rates and historical prices.
The decision to enforce these rules is a significant win for healthcare transparency and consumer advocacy. It empowers patients by equipping them with vital information about the costs of their medications, allowing them to compare prices and make informed decisions when it comes to their healthcare. This move also brings much-needed accountability to the healthcare industry, as it incentivizes insurers and healthcare providers to be more transparent with their pricing practices.
The publication of prescription drug prices is particularly crucial considering the rising costs of medications in the United States. Many patients struggle to afford the medications they need, and the lack of pricing transparency only exacerbates this issue. With the TiC rules in place, patients can now have a better understanding of the costs associated with their prescriptions, enabling them to explore alternative options if necessary and potentially save money.
Furthermore, this enforcement sends a clear message that the Biden administration is committed to promoting healthcare transparency and protecting patients’ rights. It signifies a departure from the previous administration’s approach and highlights a renewed focus on addressing healthcare affordability and accessibility.
However, it is important to acknowledge that the implementation of these rules may face challenges. Insurers and health plans may encounter difficulties in complying with the disclosure requirements, especially if they do not have existing systems in place to gather and publish this information. Additionally, there may be concerns about the potential impact on drug pricing and the overall healthcare market. It will be crucial for the relevant departments to provide guidance and support to ensure a smooth transition and effective implementation.
In conclusion, the Biden administration’s reversal on the enforcement of TiC rules is a positive step towards promoting healthcare transparency and empowering patients. By requiring the publication of prescription drug prices, this move provides consumers with crucial information to make informed decisions about their healthcare. It also signals a commitment to addressing healthcare affordability and accessibility. While challenges may arise during implementation, the potential benefits for patients and the healthcare industry as a whole make these rules an important development in the quest for a more transparent and patient-centric healthcare system.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...