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HDA Statement on the President's Drug Affordability Executive Orders

July 24, 2020

ARLINGTON, Va. — In response to President Trump signing drug pricing Executive Orders (EOs), Healthcare Distribution Alliance (HDA) President and CEO Chester “Chip” Davis, Jr. released the following statement.

“As an industry that is working around-the-clock to move critical medicines to providers across the country, we are committed to ensuring patients have access to the high-quality, safe and effective medicines they need at an affordable price.

“Specifically, importation has significant implications for the safety and security of the pharmaceutical supply chain and patient health. Analysis from last year found that federal importation policies would lead to a five percent increase in drug-related adverse events and at least $1.4 billion in unforeseen costs for the healthcare system, regulators and patients. At the same time, importation will likely destabilize efforts of distributors and its supply chain partners to implement the Drug Supply Chain Security Act (DSCSA), a system that identifies and traces certain prescription drugs as they are distributed across the country.

“In respect to the International Pricing Index (IPI), HDA is concerned that it focuses too heavily on reducing program expenditures at the expense of patient access to critical medications and quality of care. Ultimately, HDA feels strongly that the IPI model would drastically disrupt a supply chain that is working well and could impede access and/or delay care for Medicare patients.

“Finally, distributors believe they can play a vital role in operationalizing the transition from back-end rebates to point-of-sale price reductions. By leveraging their expertise and existing chargeback systems, HDA’s members would work to ensure a seamless transition so that Medicare and Medicaid beneficiaries would continue to have access to all medically necessary drugs and therapies and that pharmacy and provider customers would be minimally impacted.

“HDA looks forward to engaging with the administration and Congress as we collectively explore workable solutions to reduce costs for patients without limiting access, while collaborating closely with our trading partners to ensure greater efficiencies and savings for the pharmaceutical supply chain.”

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ABOUT THE HEALTHCARE DISTRIBUTION ALLIANCE

The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors — the vital link between the nation’s pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA’s non-profit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.

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