Executive order to raise drug price transparency is signed by DeSantis

"I think it's going to be very, very meaningful."

Gov. Ron DeSantis

Gov. Ron DeSantis signed an executive order Friday at Cape Coral High School to increase transparency for prescription drug prices in Florida.

The point of the executive order is to ultimately lower the price of prescription drugs. DeSantis said. He said that with the rise in food and gas costs, addressing the price of pharmaceuticals is one area he could "make a difference."

"This executive order is really probably the first time Florida as a state has taken action to ensure that we're saving money for Floridians regarding the middlemen and what happens with the prescription drug programs," DeSantis said. "I think it's going to be very, very meaningful."

The order would help make pharmacy benefit managers, third-party administrators of prescription drug programs, accountable when managing prescription drug benefits for insurance companies.

"Florida continues to lead the nation in ensuring accountability in the health care industry and in introducing reforms to combat rising prescriptions costs," DeSantis said. "This executive order requires accountability and transparency for pharmaceutical middlemen when doing business with the state, thereby reducing the upward pressure on prescription drug costs."

The order directs all executive agencies to include the following in all future contracts with PBMs:

Prohibit spread pricing

Prohibit reimbursement claw backs

Include data transparency and reporting requirements

Review all rebates, payments and relationships between pharmacies, insurers and manufacturers

Amend all current contracts they can with the same provisions

Michael Jackson is the executive vice president and CEO of the Florida Pharmacy Association and member of EMPOWER Patients, a coalition of independent and community pharmacies focused on increasing access to affordable medication by eliminating pharmacy benefit managers.

In a news release sent Friday, Jackson applauded DeSantis on the executive order.

"We are encouraged by this latest development – which follows the passage of House Bill 357 — and the governor's continued commitment on this critical issue facing so many Floridians and their families," Jackson said.

House Bill 357, which went into effect July 1, revised provisions of the Florida Insurance Code to increase oversight of pharmacy benefit managers, known as PBMs.

Agency for Healthcare Administration Secretary Simone Marstiller, spoke in favor of the DeSantis order at the news conference, saying it would hold the entire pharmaceutical industry accountable and make sure taxpayers save money.

"We're going to use the executive order as our baseline and we're going to look for more ways to ensure that we are saving taxpayers money and we are ensuring that independent and small pharmacies can serve not only the Medicaid population, but all members of this community without going out of business at the hands of PBMs."

The biggest hurdle though, according to DeSantis and Marstiller, is the Food and Drug Administration.

The executive order isn't the only thing the state has done to try and lower prescription drug prices, according to DeSantis. The state's Canadian Prescription Drug Importation Program has been under review by the FDA for nearly 600 days.

This program, if approved, would allow prescriptions drugs to be imported to Florida from Canada, where prices are significantly cheaper.

ACHA filed a Freedom of Information Act to find out why the program has been stalled.

DeSantis pointed out that while the FDA was quick to approve COVID-19 vaccines for children, and the import of baby formula, the agency has taken its time when it comes to Florida's request for importing prescription drugs.

"It's interesting when you look at the FDA dragging their feet on what we're trying to do, which is buy cheaper drugs," DeSantis said.

Nikki Ross covers education for the Fort Myers News-Press and Naples Daily News. She can be reached at NRoss@gannett.com or follow her on Twitter @nikkiinreallife.

"I think it's going to be very, very meaningful."

Gov. Ron DeSantis