Trump Administration Releases “Most Favored Nation” Executive Order President Trump, as expected, has released an executive order using foreign price controls to set prices in both Medicare Part B and Part D. The innovation-halting executive order would test a “payment model” in Medicare that utilizes the so called “most-favored-nation price” for Parts B and D. This price “shall mean the lowest price, after adjusting for volume and differences in national gross domestic product, for a pharmaceutical product that the drug manufacturer sells in a member country of the Organisation for Economic Co-operation and Development (OECD) that has a comparable per-capita gross domestic product.”  Put bluntly, this executive order puts politics over Patients. BioNJ President and CEO Debbie Hart said in a statement that “at a time when New Jersey’s biopharmaceutical sector is working tirelessly to develop COVID-19 treatments and vaccines, this executive order will serve to put an end to the innovation that has resulted in cures and treatments once thought impossible for hepatitis, cystic fibrosis, cancer and so many other diseases. Moreover, it is the Patient who will suffer most should this proposal move forward with the possibility of fewer treatments coming to the marketplace and disruption in the popular Part B and Part D programs.” Drug pricing reforms should rightly focus on lowering Patient costs at the pharmacy counter first. Unfortunately, this executive order misses that important mark by a sizable margin. Click here read a copy of the executive order.

Trump Executive Order Updates Meanwhile, the health system continues to await additional information on other executive orders announced by President Trump in the last several weeks. In addition to the Most Favored Nation executive order, rulemaking or other regulatory action has not yet been unveiled for other orders related to 340B for insulin and EpiPens, the Part D “rebate rule” and importation. Regulatory action to implement these executive orders could be unveiled in the coming weeks. Stay tuned for additional information on these orders as soon as it is available.

Federal Drug Pricing and Incentives, COVID-19 Legislation Update   A final COVID-19 package remains elusive among congressional and White House negotiators. Issues such as relief to states and continued unemployment benefits are among the policy items on the negotiating table. A slimmed-down Senate COVID-19 package did not receive enough votes to move forward.  Meanwhile, H.R. 4439, legislation to make permanent the rare pediatric disease priority review voucher program continues to gain momentum, with the House Energy and Commerce Committee moving the legislation forward in a September 9 markup session. Thank you to Committee Chairman New Jersey Congressman Frank Pallone for his support of this legislation. In addition, NJ Congressman Tom Malinowski recently added his name as a cosponsor of this important effort to speed cures to Patients with unmet medical needs. Thank you to Congressman Malinowski for supporting this important legislation.

Governor Murphy Delivers Revised Budget Address NJ Governor Phil Murphy delivered his revised 2021 budget address to present his budget for the remaining nine months of the fiscal year. The COVID-19 pandemic necessitated significant changes in the 2021 budget process, including moving the fiscal year to the end of September. The revised proposed budget includes a suggested permanent 2.5 percent CBT surtax, an opioid assessment and a “Millionaire’s Tax.” The budget also includes continued funding for the New Jersey Commission on Science, Innovation and Technology.  Click here for BioNJ’s Policy Update on the revised budget address. BioNJ submitted testimony to the NJ General and Assembly Budget Committees articulating our support for continued funding for the Commission while articulating concerns with an assessment on any FDA-approved treatment with appropriate clinical use as well as the CBS surtax. Stay tuned for more information as the NJ Legislature concludes its 2021 budget process.

Congresswoman Sherrill Joins BioNJ for Town Hall Event Recently, Congresswoman Mikie Sherrill (NJ-11) joined BioNJ President and CEO Debbie Hart for a BioNJ Members-Only Town Hall. Congresswoman Sherrill gave BioNJ Members her perspective on the federal COVID-19 response and continued federal incentives for biopharmaceutical innovation. Rare disease advocate Julie Raskin, Teva’s Michael Brzica and AbbVie’s Binta Beard posed questions to Congresswoman Sherrill on Medicaid coverage, the biopharmaceutical supply chain and the post-election outlook. BioNJ thanks Congresswoman Sherrill for joining us for this important event, and we look forward to working with her on behalf of innovation and Patient access in New Jersey.

We Need Your Help: Support BioNJ Policy and Advocacy Efforts BioNJ is the voice of New Jersey’s life sciences sector in Trenton and Washington. BioNJ’s Public Policy Support Series sponsorship opportunities are available for 2020. Sponsorship opportunities help make sure that our message is delivered in both Trenton and Washington, D.C. Help ensure BioNJ continues to deliver our message of improved Patient access and enhanced innovation through a Public Policy Support Series Sponsorship. Click here for more information.

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