The Governor’s Task force on Reducing Prescription Drug Prices
submitted a 156 page final report to Governor Tony Evers on October 21. Among the highlights of the report was a recommendation that would help protect the 340B program.
The report noted that the 340B program “was established to provide relief to safety net providers from high drug prices and allow these providers to (a) stretch scarce federal resources as far as possible, (b) reach more vulnerable patients, and (c) deliver more comprehensive services.” It also cited policies some other states have pursued that would prohibit pharmacy benefit managers and other third-party payers from the practice of “discriminatory reimbursement” whereby they provide lower reimbursement rates to providers that receive 340B discounts. The report suggested such policies prohibiting discriminatory reimbursement may help covered entities reinvest 340B savings to support patient care.
In addition to 340B, the report made several other recommendations to reduce the cost of prescription drugs, including:
- Capping insulin copays
- Increasing cost transparency in the drug supply chain
- Enhancing anti-trust enforcement of drug companies and boosting consumer protections
- Establishing a statewide repository for unused or discontinued prescriptions to help needy Wisconsinites
- Creating a purchasing entity at the state to leverage purchasing power for public sector employees and save taxpayer dollars
- Advocating for federal action to end anti-competitive drug manufacturer practices that drive up or maintain high drug costs
WHA thanks Brian Stephens, president and CEO of Door County Medical Center, for serving as a hospital representative and helping advance discussions on the Task Force, which met eight times between November 2019 and August 2020
For questions, please contact WHA’s Vice President of Policy Development,
Laura Rose or Vice President of Federal and State Relations,
Jon Hoelter.