83_FR_22787 83 FR 22692 - HHS Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs

83 FR 22692 - HHS Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of the Secretary

Federal Register Volume 83, Issue 95 (May 16, 2018)

Page Range22692-22700
FR Document2018-10435

Through this request for information, HHS seeks comment from interested parties to help shape future policy development and agency action.

Federal Register, Volume 83 Issue 95 (Wednesday, May 16, 2018)
[Federal Register Volume 83, Number 95 (Wednesday, May 16, 2018)]
[Notices]
[Pages 22692-22700]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10435]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary

RIN 0991-ZA49


HHS Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs

AGENCY: Department of Health and Human Services.

ACTION: Policy Statement; Request for information.

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SUMMARY: Through this request for information, HHS seeks comment from 
interested parties to help shape future policy development and agency 
action.

DATES: Comments must be submitted on or before July 16, 2018.

ADDRESSES: You may submit comments in one of three ways (please choose 
only one of the ways listed):
    1. Electronically. You may submit electronic comments to http://www.regulations.gov. Follow the ``Submit a comment'' instructions.
    2. By regular mail. You may mail written comments to the following 
address ONLY: Department of Health and Human Services, 200 Independence 
Ave. SW, Room 600E, Washington, DC 20201.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.
    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Department of Health and Human Services, 
200 Independence Ave. SW, Room 600E, Washington, DC 20201.

FOR FURTHER INFORMATION CONTACT: John O'Brien, (202) 690-7886.

SUPPLEMENTARY INFORMATION: The United States is the world's leader in 
biopharmaceutical innovation. American innovation has improved health 
and quality of life for billions of people, and was made possible by 
our intellectual property system, decades of government and privately-
funded research, strong capital markets, and the world's largest 
scientific research base. By rewarding innovation through patent and 
data protection, American companies hold the intellectual property 
rights for most new, and potentially life changing, medicines. Our 
regulatory system is the most rigorous in the world, ensuring the 
safety and efficacy of drugs for American patients. Medicare, Medicaid, 
other Federal health programs, and private payers ensure Americans have 
access to medicines, from innovative new cures, to generic versions of 
medications that have markedly lowered costs for consumers.
    As part of President Trump's bold plan to put American patients 
first, the Department of Health and Human Services has developed a 
comprehensive blueprint that addresses many of the challenges and 
opportunities impacting American patients and consumers. The blueprint 
covers multiple areas including, but not limited to:
     Improving competition and ending the gaming of the 
regulatory process,
     supporting better negotiation of drug discounts in 
government-funded insurance programs,
     creating incentives for pharmaceutical companies to lower 
list prices, and,
     reducing out-of-pocket spending for patients at the 
pharmacy and other sites of care.
    HHS also recognizes that achieving the goal of putting American 
patients first will require interagency collaboration on pharmaceutical 
trade policies that promote innovation, and are transparent, 
nondiscriminatory, and increase fair market access for American 
innovators. Furthermore, HHS seeks to identify when developed nations 
are paying less for drugs than the prices paid by Federal health 
programs, and correct these inequities through better negotiation.
    HHS has already acted to increase the affordability of medicines 
for millions of our citizens, but is also going much further in 
response to President Trump's call to action. Through the work of the 
Food and Drug Administration and the Centers for Medicare & Medicaid 
Services, HHS has tremendous ability to change how drugs are developed 
and paid for in the United States.
    The status quo is no longer acceptable. Millions of Americans face 
soaring drug prices and higher out-of-pocket costs, while manufacturers 
and middlemen such as pharmacy benefit managers (PBMs) and distributors 
benefit from rising list prices and their resulting higher rebates and 
administrative fees. An unprecedented re-examination of the whole 
system and opportunities for reform is long overdue. We believe a 
national focus on lowering list prices and out-of-pocket costs has the 
potential to create new and disruptive alternatives to the current 
system, while maintaining its many virtues. It is time to realign the 
system in a way that promotes the development of affordable innovations 
that improve health outcomes and lower both out-of-pocket cost and the 
total cost of care.
    Through this request for information, HHS seeks comment from 
interested parties to help shape future policy development and agency 
action.

Table of Contents:

I. Previous Actions by the Trump Administration
    A. Increasing Competition
    B. Better Negotiation
    C. Creating Incentives to Lower List Prices
    D. Reducing Patient Out-of-Pocket Spending
II. Responding to President Trump's Call to

[[Page 22693]]

Action
    A. Increasing Competition
    B. Better Negotiation
    C. Creating Incentives to Lower List Prices
    D. Reducing Patient Out-of-Pocket Spending
III. Solicitation of Comments
    A. Increasing Competition
    B. Better Negotiation
    C. Creating Incentives to Lower List Prices
    D. Reducing Patient Out-of-Pocket Spending
    E. Additional Feedback
IV. Collection of Information Requirements

I. Previous Actions by the Trump Administration

    The President has consistently emphasized the need to reduce the 
price of prescription drugs. The Trump Administration has already taken 
a number of significant administrative steps, and proposed in the 
President's FY2019 Budget, to improve competition and end the gaming of 
regulatory processes, support better negotiation of drug discounts 
through government insurance programs, create incentives for 
pharmaceutical companies to lower list prices, and reduce consumer out-
of-pocket spending at the pharmacy and other care settings.

A. Increasing Competition

    Since the beginning of the Trump Administration, HHS has taken a 
number of actions to increase competition and end the gaming of 
regulatory processes that may keep drug prices artificially inflated or 
hinder generic, branded, or biosimilar competition. These efforts 
include:
     Accelerating Food and Drug Administration (FDA) approval 
of generic drugs. Studies show that greater generic competition is 
associated with lower prices. FDA is publishing the names of drugs that 
have no competitors in order to spur new entrants and bring prices 
down. Over 1,000 generic drugs were approved in 2017, which is the most 
in FDA's history in a calendar year by over 200 drugs. These generic 
approvals saved American consumers and taxpayers nearly $9 billion in 
2017.
     Drug Competition Action Plan. In 2017, President Trump's 
FDA established a Drug Competition Action Plan to enable patients to 
access more affordable medications by focusing the Agency's efforts in 
three key areas: (1) Improving the efficiency of the generic drug 
development, review, and approval process; (2) maximizing scientific 
and regulatory clarity with respect to complex generic drugs; and (3) 
closing loopholes that allow brand-name drug companies to ``game'' FDA 
rules in ways that forestall the generic competition Congress intended. 
The Agency also has taken steps to prioritize its review of generic 
drug applications; issued guidance to improve efficiencies in the 
development, review, and approval processes for generic drugs, 
including complex generic drugs; and issued guidance to further 
streamline the submission and review process for shared system REMS, 
and to allow collective submissions to streamline the review of shared 
Risk Evaluation and Mitigation Strategies (REMS).
     FDA also announced it will facilitate opportunities for 
enhanced information sharing between manufacturers, doctors, patients 
and insurers to improve patient access to medical products, including 
through value-based insurance.
     Speeding Access to More Affordable Generics by Spurring 
Competition. Today, a generic manufacturer that has been awarded 180-
day exclusivity for being the first generic to file can ``park'' their 
application with FDA, preventing additional generic manufacturers from 
entering the market. The President's FY2019 Budget proposes to prevent 
companies from using their 180-day exclusivity to indefinitely delay 
real competition and savings for consumers by seeking a legislative 
change to start a company's 180-day exclusivity clock in certain 
instances when another generic application is ready for approval, but 
is blocked solely by such a first applicant's 180-day exclusivity.
     Finalizing a policy in which each biosimilar for a given 
biologic gets its own billing and payment code under Medicare Part B, 
to incentivize development of additional lower-cost biosimilars. Prior 
approaches to biosimilar coding and payment would have created a race 
to the bottom of biosimilar pricing, while leaving the branded product 
untouched, making it an unviable market that few would want to enter.

B. Better Negotiation

    Medicare Part D has been very successful since it launched in 2006. 
However, prescription drug markets are different than they were 12 
years ago, and in some cases Part D plan sponsors may be prohibited 
from doing what private payers outside the Medicare program do to 
negotiate effectively and keep costs low. More can also be done across 
the Medicare program to provide beneficiaries with the lower costs and 
greater price transparency resulting from better negotiation.
    Since the beginning of the Trump Administration, HHS has taken a 
number of actions to support better negotiation. These efforts include:
     Finalizing changes to the Medicare Prescription Drug 
Program in the 2019 Part C and Part D regulation allowing for faster 
mid-year substitution of generic drugs onto formularies.
     Proposing in the President's FY2019 Budget \1\ a 5-part 
plan to modernize the Medicare Part D program, a portion of which 
includes enhancing Part D plans' negotiating power with manufacturers 
by changing Part D plan formulary standards to require a minimum of one 
drug per category or class rather than two. We note that the 5-part 
plan is intended to be implemented together, as eliminating even one 
piece of the package significantly changes the proposal's impacts.
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    \1\ https://www.whitehouse.gov/wp-content/uploads/2018/02/budget-fy2019.pdf.
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     Proposing in the President's FY2019 Budget to address 
abusive drug pricing by manufacturers by: establishing an inflation 
limit for reimbursement of Medicare Part B drugs; reducing Wholesale 
Acquisition Cost (WAC)-Based Payment when Average Sales Price (ASP) 
isn't available; and improving manufacturers' reporting of Average 
Sales Prices to set accurate payment rates.
     Increasing the integrity of the Medicaid Drug Rebate 
Program, so that manufacturers pay their fair share in rebates, by 
proposing in the President's FY2019 Budget to remove ambiguity 
regarding how drugs should be reported under the program. HHS is also 
manually reviewing each new drug that has been reported in the Medicaid 
rebate system on a quarterly basis to make sure classifications are 
correct, and the United States took legal action against Mylan for 
their misclassification of EpiPen, resulting in an agreement for Mylan 
to pay back $465 million in rebate payments.
     Proposing in the President's FY2019 Budget to further 
clarify the Medicaid definition of brand drugs, which would address 
inappropriate interpretations leading some manufacturers to classify 
certain brand and over-the-counter drugs as generics for Medicaid 
rebate purposes, reducing the rebates they owe.
     Proposing in the President's FY2019 Budget to call for new 
Medicaid demonstration authority for up to five states to test drug 
coverage and financing reforms that build on private sector best 
practices. Participating states would determine their own drug 
formularies, coupled with an appeals process to protect beneficiary 
access to non-covered drugs based on medical need, and negotiate drug 
prices directly

[[Page 22694]]

with manufacturers. HHS and participating states would rigorously 
evaluate these demonstrations, which would provide states with new 
tools to control drug costs and tailor drug coverage decisions to state 
needs.
     Proposing in the President's FY2019 Budget to authorize 
the HHS Secretary to leverage Medicare Part D plans' negotiating power 
for certain drugs covered under Part B.
     Addressing price disparities in the international market. 
The Administration is updating a number of historical studies to 
analyze drug prices paid in countries that are a part of the 
Organisation for Economic Co-operation and Development (OECD).

C. Creating Incentives to Lower List Prices

    The list price of a drug does not reflect the discounts or price 
concessions paid to a PBM, insurer, health plan, or government program. 
Obscuring these discounts can shift costs to consumers in commercial 
health plans and Medicare beneficiaries. Many incentives in the current 
system reward higher list prices, and HHS is interested in creating new 
incentives to reward drug manufacturers that lower list prices or do 
not increase them.
    Since the beginning of the Trump Administration, HHS has taken a 
number of actions to create incentives to lower list prices. These 
efforts include:
     Proposing in the President's FY2019 budget a 5-part plan 
to modernize the Medicare Part D program, a portion of which includes 
the exclusion of manufacturer discounts from the calculation of 
beneficiary out-of-pocket costs in the Medicare Part D coverage gap, 
and the establishment of a beneficiary out-of-pocket maximum in the 
Medicare Part D catastrophic phase to reduce out-of-pocket spending for 
beneficiaries who spend the most on drugs. The changes in the 
catastrophic phase would shift more responsibility onto plans, creating 
incentives for plans to negotiate with manufacturers to lower prices 
for high-cost drugs. We note that the 5-part plan is intended to be 
implemented together, as eliminating even one piece of the package 
significantly changes the proposal's impacts.
     In addition, the President's FY2019 Budget proposes 
reforms to improve 340B Program integrity and ensure that the benefits 
derived from participation in the program are used to benefit patients, 
especially low-income and uninsured populations.

D. Reducing Patient Out-of-Pocket Spending

    American patients have the right to know what their prescription 
drugs will really cost before they get to the pharmacy or get the drug. 
Too many people abandon their prescriptions at the pharmacy when they 
discover the price is too high, and too many patients are never 
informed of lower cost options.
    Since the beginning of the Trump Administration, HHS has taken a 
number of steps to lower consumer out-of-pocket spending and improve 
transparency. These efforts include:
     Finalizing Medicare Outpatient Prospective Payment System 
(OPPS) rules to reduce beneficiary out-of-pocket spending for 340B 
drugs administered in certain hospitals by an estimated $320 million in 
2018, which would equal $3.2 billion when multiplied over ten years.
     Seeking information about changes in the Medicare 
Prescription Drug Program regulations for contract year 2019 that would 
increase transparency for people with Medicare prescription drug 
coverage. The proposed rule included a Request for Information 
soliciting comment on potential policy approaches for applying some 
manufacturer rebates and all pharmacy price concessions to the price of 
a drug at the point of sale.
     Finalizing changes to the Medicare Prescription Drug 
Program in the 2019 Part C and Part D regulation allowing Medicare 
beneficiaries receiving low-income subsidies to access biosimilars at a 
lower cost.
     Proposing in the President's FY2019 Budget a 5-part plan 
to modernize the Medicare Part D program, a portion of which includes 
eliminating cost-sharing on generic drugs for low-income beneficiaries 
and requiring Medicare Part D plans to apply a substantial portion of 
rebates at the point of sale. We note that the 5-part plan is intended 
to be implemented together, as eliminating even one piece of the 
package significantly changes the proposal's impacts. We also note that 
in the months following this Part D proposed rule and the President's 
budget proposal that included this policy change explicitly, several 
major insurers and pharmacy benefit managers announced they would pass 
along a portion of rebates to individual members in their fully-insured 
populations or when otherwise requested by employers.

II. Responding to President Trump's Call to Action

    President Trump recently reaffirmed his commitment to reducing the 
price of prescription drugs, and called on the Administration to 
propose new strategies and take bold actions to improve competition and 
end the gaming of regulatory processes, support better negotiation of 
drug discounts through government insurance programs, create incentives 
for pharmaceutical companies to lower list prices, and reduce consumer 
out-of-pocket spending at the pharmacy and other care settings. HHS may 
undertake these and other actions, to the extent permitted by law, in 
response to President Trump's call to action.

A. Improve Competition

    In response to President Trump's call to action, HHS may support 
improved competition by:
     Taking steps to prevent gaming of regulatory processes: 
FDA will issue guidance to address some of the ways in which 
manufacturers may seek to use shared system REMS to delay or block 
competition from generic products entering the market.
     Promoting innovation and competition for biologics. FDA 
will issue new policies to improve the availability, competitiveness, 
and adoption of biosimilars as affordable alternatives to branded 
biologics. FDA will also continue to educate clinicians, patients, and 
payors about biosimilar and interchangeable products as we seek to 
increase awareness about these important new treatments.

B. Better Negotiation

    In response to President Trump's call to action, HHS may support 
better negotiation by:
     Directing CMS to develop demonstration projects to test 
innovative ways to encourage value-based care and lower drug prices. 
These models should hold manufacturers accountable for outcomes, align 
with CMS's priorities of value over volume and site-neutral payments, 
and provide Medicare providers, payers, and states with additional 
tools to manage spending for high-cost therapies.
     Allowing Part D plans to adjust formulary or benefit 
design during the benefit year if necessary to address a price increase 
for a sole source generic drug. Presently, Part D plans do not contract 
with generic drug manufacturers for the purchase of generic drugs, and 
generally are not permitted to change their formulary or benefit design 
without CMS approval in

[[Page 22695]]

response to a price increase. This change could ensure Part D plans can 
respond to a price increase by the only manufacturer of a generic drug.
     Providing plans full flexibility to manage high cost drugs 
that do not provide Part D plans with rebates or negotiated fixed 
prices, including in the protected classes. Presently, Part D plans are 
unable to negotiate lower prices for high-cost drugs without 
competition. This change could allow Part D plans to use the tools 
available to private payers outside of the Medicare program to better 
negotiate for these drugs.
     Updating the methodology used to calculate Drug Plan 
Customer Service star ratings for plans that are appropriately managing 
utilization of high-cost drugs. Presently, if a Part D plan issues an 
adverse redetermination decision, the enrollee, the enrollee's 
representative or the enrollee's prescriber may appeal the decision to 
the Independent Review Entity (IRE). This process may discourage Part D 
plan sponsors from appropriately managing utilization of high-cost 
drugs. This change could provide Part D plan sponsors with the ability 
to appropriately manage high-cost changes, while holding sponsors 
accountable primarily using other successful enforcement mechanisms.
     Evaluating options to allow high-cost drugs to be priced 
or covered differently based on their indication. Presently, Part D 
plans must cover and pay the same price for a drug regardless of the 
indication for which it was prescribed. This change could permit Part D 
plans to choose to cover or pay a different price for a drug, based on 
the indication.
     Sending the President a report identifying particular 
drugs or classes of drugs in Part B where there are savings to be 
gained by moving them to Part D.
     Taking steps to leverage the authority created by the 
Competitive Acquisition Program (CAP) for Part B Drugs & Biologicals. 
This program will generally provide physicians a choice between 
obtaining these drugs from vendors selected through a competitive 
bidding process or directly purchasing these drugs and being paid under 
the current average sales price (ASP) methodology. The CAP, or a model 
building on CAP authority, may provide opportunities for Federal 
savings to the extent that aggregate bid prices are less than 106 
percent of ASP, and provides opportunities for physicians who do not 
wish to bear the financial burdens and risk associated with being in 
the business of drug acquisition.
     Working in conjunction with the Department of Commerce the 
U.S. Trade Representative, and the U.S. Intellectual Property 
Enforcement Coordinator to develop the knowledge base necessary to 
address the unfair disparity between the drug prices in America and 
other developed countries. The Trump Administration is committed to 
making the appropriate regulatory changes and seeking legislative 
solutions to put American patients first.

C. Lowering List Prices

    In response to President Trump's call to action, HHS may:
     Call on the FDA to evaluate the inclusion of list prices 
in direct-to-consumer advertising.
     Direct the Centers for Medicare & Medicaid Services to 
make Medicare and Medicaid prices more transparent, hold drug makers 
accountable for their price increases, highlight drugs that have not 
taken price increases, and recognize when competition is working with 
an updated drug pricing dashboard. This tool will also provide 
patients, families, and caregivers with additional information to make 
informed decisions and predict their cost sharing.
     Develop proposals related to the Affordable Care Act's 
Maximum Rebate Amount provision, which limits manufacturer rebates on 
brand and generic drugs in the Medicaid program to 100% of the Average 
Manufacturer Price.

D. Reduce Patient Out-of-Pocket Spending

    In response to President Trump's call for action, HHS may:
     Prohibit Part D plan contracts from preventing pharmacists 
from telling patients when they could pay less out-of-pocket by not 
using their insurance--also known as pharmacy gag clauses.
     Require Part D Plan sponsors to provide additional 
information about drug price increases and lower-cost alternatives in 
the Explanation of Benefits they currently provide their members.

III. Solicitation of Comments

    Building on the ideas already proposed, HHS is considering even 
bolder actions to bring down prices for patients and taxpayers. These 
include new measures to increase transparency; fix the incentives that 
may be increasing prices for patients; and reduce the costs of drug 
development. HHS is interested in public comments about how the 
Department can take action to improve competition and end the gaming of 
regulatory processes, support better negotiation of drug discounts 
through government insurance programs, create incentives for 
pharmaceutical companies to lower list prices, and reduce consumer out-
of-pocket spending at the pharmacy and other care settings. HHS is also 
interested in public comments about the general structure and function 
of the pharmaceutical market, to inform these actions. Proposals 
described in this section are for administrative action, when within 
agency authority, and legislative proposals as necessary.
    In this Request for Information, HHS is soliciting comments on 
these and other policies under active consideration.

A. Increasing competition

    Underpricing or Cost-Shifting. Do HHS programs contain the correct 
incentives to obtain affordable prices on safe and effective drugs? 
Does the Best Price reporting requirement of the Medicaid Drug Rebate 
Program pose a barrier to price negotiation and certain value-based 
agreements in other markets, or otherwise shift costs to other markets? 
Are government programs causing underpricing of generic drugs, and 
thereby reducing long-term generic competition?
    Affordable Care Act Taxes and Rebates. The Affordable Care Act 
imposed tens of billions of dollars in new taxes and costs on drugs 
sold in government programs through a new excise tax, an increase in 
the Medicaid drug rebate amounts, and an extension of these higher 
rebates to commercially-run Medicaid Managed Care Organizations. How 
have these changes impacted manufacturer list pricing practices? Are 
government programs being cross-subsidized by higher list prices and 
excess costs paid by individuals and employers in the commercial 
market? If cross-subsidization exists, are the taxes and artificially-
depressed prices causing higher overall drug costs or other negative 
effects?
Access to Reference Product Samples
    Distribution restrictions. Certain prescription drugs are subject 
to limitations on distribution. Some of these distribution limitations 
are imposed by the manufacturer, while others may be imposed in 
connection with an FDA-mandated Risk Evaluation and Mitigation Strategy 
(REMS). Some manufacturers may be gaming these distribution limitations 
to prevent generic developers from accessing their drugs to conduct the 
tests that are legally required for a generic drug to be brought to 
market, thereby limiting

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opportunities for competition that could place downward pressure on 
drug prices. In some instances, for products that are subject to REMS 
that impact distribution, manufacturers continue to restrict access to 
generic developers even after the FDA issues a letter stating that it 
has favorably evaluated the developer's proposed safety protections for 
testing and would not consider the provision of drug samples to this 
developer for generic development to violate the applicable REMS. 
Should additional steps be taken to review existing REMS to determine 
whether distribution restrictions are appropriate? Are there terms that 
could be included in REMS, or provided in addition to REMS, that could 
expand access to products necessary for generic development? Are there 
other steps that could be taken to facilitate access to products that 
are under distribution limitations imposed by the manufacturer?
    Samples for biosimilars and interchangeables. Like some generic 
drug developers, companies engaged in biosimilar and interchangeable 
product development may encounter difficulties obtaining sufficient 
samples of the reference product for testing. What actions should be 
considered to facilitate access to reference product samples by these 
companies?
Biosimilar Development, Approval, Education, and Access
    Resources and tools from FDA: FDA prioritizes ongoing efforts to 
improve the efficiency of the biosimilar and interchangeable product 
development and approval process. For example, FDA is working to 
identify areas in which additional information resources or development 
tools may facilitate the development of high quality biosimilar and 
interchangeable products. What specific types of information resources 
or development tools would be most effective in reducing the 
development costs for biosimilar and interchangeable products?
    Improving the Purple Book. In the Purple Book, FDA publishes 
information about biological products licensed under section 351 of the 
Public Health Service Act, including reference products, biosimilars, 
and interchangeable products. The Purple Book provides information 
about these products that is useful to prescribers, pharmacists, 
patients, and other stakeholders. FDA is committed to the timely 
publication of certain information about reference product exclusivity 
in the Purple Book. How could the Purple Book be more useful to health 
care professionals, patients, manufacturers, and other stakeholders? 
What additional information could be added to increase the utility of 
the Purple Book?
    Educating providers and patients. Physician and patient confidence 
in biosimilar and interchangeable products is critical to the increased 
market acceptance of these products. FDA intends to build on the 
momentum of past education efforts, such as the launch of its 
Biosimilars Education and Outreach Campaign in 2017, by developing 
additional resources for health care professionals and patients. What 
types of information and educational resources on biosimilar and 
interchangeable products would be most useful to heath care 
professionals and patients to promote understanding of these products? 
What role could state pharmacy practice acts play in advancing the 
utilization of biosimilar products?
    Interchangeability. How could the interchangeability of biosimilars 
be improved, and what effects would it have on the prescribing, 
dispensing, and coverage of biosimilar and interchangeable products?

B. Better Negotiation

    The American pharmaceutical marketplace is built on innovation and 
competition. However, regulations governing how Medicare and Medicaid 
pay for prescription drugs have not kept pace with the availability of 
new types of drugs, particularly higher-cost curative therapies 
intended for use by fewer patients. Drug companies, commercial 
insurers, and states have proposed creative approaches to financing 
these new treatments, including indication-based pricing, outcomes-
based contracts, long-term financing models, and others. Value-based 
transformation of our entire healthcare system is a top HHS priority. 
Improving price transparency is an important part of achieving this 
aim. What steps can be taken to improve price transparency in Medicare, 
Medicaid, and other forms of health coverage, so that consumers can 
seek value when choosing and using their benefits?
    Value-Based Arrangements and Price Reporting. What benefits would 
accrue to Medicare and Medicaid beneficiaries by allowing manufacturers 
to exclude from statutory price reporting programs discounts, rebates, 
or price guarantees included in value-based arrangements? How would 
excluding these approaches from Average Manufacturer Price (AMP) and 
Best Price (BP) calculations impact the Medicaid Drug Rebate program 
and supplemental rebate revenue? How would these exclusions affect 
Average Sales Price (ASP) and 340B Ceiling Prices? What benefits would 
accrue to Medicare and Medicaid beneficiaries by extending the time for 
manufacturers to report restatements of AMP and/or BP reporting, as 
outlined in 42 CFR 447.510, to accommodate adjustments because of 
possible extended VBP evaluation timeframes? Is there a timeframe CMS 
should consider that will allow manufacturers to restate AMP and BP 
without negative impact on state rebate revenue? What modifications 
could be made to the following regulatory definitions in the current 
Medicaid Drug Rebate Program that could facilitate the development of 
VBP arrangements: (1) Bundled sale; (2) free good; (3) unit; or (4) 
best price? Would providing specific AMP/BP exclusions for VBP pricing 
used for orphan drugs help manufacturers that cannot adopt a bundled 
sale approach? What regulatory changes would Medicaid Managed Care 
organizations find helpful in negotiating VBP supplemental rebates with 
manufacturers? How would these changes affect Medicare or the 340B 
program? Are there particular sections of the Social Security Act 
(e.g., the anti-kickback statute), or other statutes and regulations 
that can be revised to assist with manufacturers' and states' adoption 
of value-based arrangements? Please provide specific citations and an 
explanation of how these changes would assist states and manufacturers 
in participating in VBP arrangements.
    Indication-Based Payments. Prescription drugs have varying degrees 
of effectiveness when used to treat different types of disease. Though 
drugs may be approved by the FDA to treat specific indications, or used 
off-label by prescribers to treat others, they are typically subject to 
the same price. Should Medicare or Medicaid pay the same price for a 
drug regardless of the diagnosis for which it is being used? How could 
indication-based pricing support value-based purchasing? What lessons 
could be learned from private health plans? Are there unintended 
consequences of current low-cost drugs increasing in price due to their 
identification as high value? How and by whom should value be 
determined?? Is there enough granularity in coding and reimbursement 
systems to support indication-based pricing? Are changes necessary to 
CMS's price reporting program definitions or how the FDA's National 
Drug Code numbers are used in CMS price reporting programs? Do 
physicians, pharmacists, and insurers have access to all the 
information they

[[Page 22697]]

need to support indication-based payments?
    Long-term Financing Models. States and other payers typically 
establish budgets or premium rates for a given benefit year. As such, 
their budgets may be challenged when a new high-cost drug unexpectedly 
becomes available in the benefit year. Long-term financing models are 
being proposed to help states, insurers, and consumers pay for high-
cost treatments by spreading payments over multiple years. Should the 
state, insurer, drug manufacturer, or other entity bear the risk of 
receiving future payments? How should Medicare or Medicaid account for 
the cost of disease averted by a curative therapy paid for by another 
payer? What regulations should CMS consider revising to allow 
manufacturers and states more flexibility to participate in novel 
value-based pricing arrangements? What effects would these solutions 
have on manufacturer development decisions? What current barriers limit 
the applicability of these arrangements in the private sector? What 
assurances would parties need to participate in more of these 
arrangements, particularly with regard to public programs?
    Part B Competitive Acquisition Program. HHS has the authority to 
operate a Competitive Acquisition Program for Part B drugs. What 
changes would vendors and providers need to see relative to the 2007-
2008 implementation of this program in order to successfully 
participate in the program? Has the marketplace evolved such that there 
would be more vendors capable of successfully participating in this 
program? Are there a sufficient number of providers interested in 
having a vendor selected through a competitive bidding process obtain 
these drugs on their behalf, and bear the financial risk and carrying 
costs? How could this program be implemented in a way that ensures a 
competitive market among multiple vendors? Is it necessary that the 
vendors also hold title to the drugs and provide a distribution channel 
or are there other ways they can provide value? What other approaches 
could lower Part B drug spending for patients of providers choosing not 
to participate, without restricting their access to care?
    Part B to D. The President's Budget requested the authority to move 
some Medicare Part B drugs to Medicare Part D. Which drugs or classes 
of drugs would be good candidates for moving from Part B to Part D? How 
could this proposal be implemented to help reduce out-of-pocket costs 
for the 27% of beneficiaries who do not have Medicare prescription drug 
coverage, or those who have Medicare supplemental benefits in Part B? 
What additional information would inform how this proposal could be 
implemented and operated?
    Part B drugs are reportedly available to OECD nations at lower 
prices than those paid by Medicare Part B providers. HHS is interested 
in receiving data describing the differences between the list prices 
and net prices paid by Medicare Part B providers, and the prices paid 
for these same drugs by OECD nations. Though these national health 
systems may be demanding lower prices by restricting access or delaying 
entry, should Part B drugs sold by manufacturers offering lower prices 
to OECD nations be subject to negotiation by Part D plans? Would this 
lead to lower out-of-pocket costs on behalf of people with Medicare? 
How could this affect access to medicines for people with Medicare?
    Fixing Global Freeloading. U.S. consumers and taxpayers generally 
pay more for brand drugs than do consumers and taxpayers in other OECD 
countries, which often have reimbursements set by their central 
government. In effect, other countries are not paying an appropriate 
share of the necessary research and development to bring innovative 
drugs to the market and are instead freeriding off U.S. consumers and 
taxpayers. What can be done to reduce the pricing disparity and spread 
the burden for incentivizing new drug development more equally between 
the U.S. and other developed countries? What policies should the U.S. 
government pursue in order to protect IP rights and address concerns 
around compulsory licensing in this area.
    Site neutrality for physician-administered drugs. Currently under 
Medicare Part B and often in Medicaid, hospitals and physicians are 
reimbursed comparable amounts for drugs they administer to patients, 
but the facility fees when drugs are administered at hospitals and 
hospital-owned outpatient departments are many times higher than the 
fees charged by physician offices. What effect would a site neutral 
payment policy for drug administration procedures have on the location 
of the practice of medicine? How would this change affect the 
organization of health care systems? How would this change affect 
competition for health care services, particularly for cancer care?
    Site neutrality between inpatient and outpatient setting. Medicare 
payment rules pay for prescription drugs differently when provided 
during inpatient care (Part A) or administered by an outpatient 
physician (Part B). Beneficiaries also have different cost-sharing 
requirements in Part A and Part B. Some drugs can be administered in 
either the inpatient or outpatient setting, while others are currently 
limited to inpatient use because of safety concerns. Do the differences 
between Medicare's Part A and Part B drug payment policies create 
affordability and access challenges for beneficiaries? What policies 
should CMS consider to ensure inpatient and outpatient providers are 
neither underpaid nor overpaid for a drug, regardless of where it was 
administered? Which elements of the inpatient or outpatient setting 
lead to naturally differential payments, and why? If a drug can be used 
safely in the outpatient setting, and achieve the same outcomes at a 
lower cost, how should Medicare encourage the shift to outpatient 
settings? In what instances would inpatient administration actually be 
less costly?
    Accuracy of national spending data. Are annual reports of health 
spending obscuring the true cost of prescription drugs? What is the 
value of better understanding the difference between gross and net drug 
prices? How could the Medicare Trustees Report, annual National Health 
Expenditure publications, Uniform Rate Review Template, and other 
publications more accurately collect and report gross and net drug 
spending in medical and pharmacy benefits? Should average Part D rebate 
amounts be reported separately for small molecule drugs, biologics, and 
high-cost drugs? What innovation is needed to maximize price 
transparency without disclosing proprietary information or data 
protected by confidentiality provisions?

C. Create Incentives To Lower List Prices

    Government programs, commercial insurers, and individual consumers 
pay for drugs differently. The price paid at the pharmacy counter or 
reimbursed to a physician or hospital is the result of many different 
complex financial transactions between drug makers, distributors, 
insurers, pharmacy benefits managers, pharmacies and others. Public 
programs are also subject to state and Federal regulations governing 
what drugs are covered, who can be paid for them, and how much will be 
paid. Too often, these negotiations do not result in the lowest out-of-
pocket costs for consumers, and may actually be causing higher list 
prices.
    Fiduciary duty for Pharmacy Benefit Managers. Pharmacy Benefit 
Managers (PBMs) and benefits consultants help buyers (insurers, large 
employers) seek rebates intended to lower net drug prices, and help 
sellers (drug

[[Page 22698]]

manufacturers) pay rebates to secure placement on health plan 
formularies. Most current PBM contracts may allow them to retain a 
percentage of the rebate collected and other administrative or service 
fees.
    Do PBM rebates and fees based on the percentage of the list price 
create an incentive to favor higher list prices (and the potential for 
higher rebates) rather than lower prices? Do higher rebates encourage 
benefits consultants who represent payers to focus on high rebates 
instead of low net cost? Do payers manage formularies favoring benefit 
designs that yield higher rebates rather than lower net drug costs? How 
are beneficiaries negatively impacted by incentives across the benefits 
landscape (manufacturer, wholesaler, retailer, PBM, consultants and 
insurers) that favor higher list prices? How can these incentives be 
reset to prioritize lower out of pocket costs for consumers, better 
adherence and improved outcomes for patients? What data would support 
or refute the premise described above?
    Should PBMs be obligated to act solely in the interest of the 
entity for whom they are managing pharmaceutical benefits? Should PBMs 
be forbidden from receiving any payment or remuneration from 
manufacturers, and should PBM contracts be forbidden from including 
rebates or fees calculated as a percentage of list prices? What effect 
would imposing this fiduciary duty on PBMs on behalf of the ultimate 
payer (i.e., consumers) have on PBMs' ability to negotiate drug prices? 
How could this affect manufacturer pricing behavior, insurance, and 
benefit design? What unintended consequences for beneficiary out-of-
pocket spending and Federal health program spending could result from 
these changes?
    Reducing the impact of rebates. Increasingly higher rebates in 
Federal health care programs may be causing higher list prices in 
public programs, and increasing the prices paid by consumers, 
employers, and commercial insurers. What should CMS consider doing to 
restrict or reduce the use of rebates? Should Medicare Part D prohibit 
the use of rebates in contracts between Part D plan sponsors and drug 
manufacturers, and require these contracts to be based only on a fixed 
price for a drug over the contract term? What incentives or regulatory 
changes (e.g., removing the discount safe harbor) could restrict the 
use of rebates and reduce the effect of rebates on list prices? How 
would this affect the behavior of drug manufacturers, PBMs, and 
insurers? How could it change formulary design, premium rates, or the 
overall structure of the Part D benefit?
    Incentives to lower or not increase list prices. Should 
manufacturers of drugs who have increased their prices over a 
particular lookback period or have not provided a discount be allowed 
to be included in the protected classes? Should drugs for which a price 
increase has not been observed over a particular lookback period be 
treated differently when determining the exceptions criteria for 
protected class drugs? What should CMS consider doing, under current 
authorities, to create incentives for Part D drug manufacturers 
committing to a price over a particular lookback period? How long 
should the lookback period be?
    The Healthcare Common Procedure Coding System (HCPCS) codes for new 
Part B drugs are not typically assigned until after they are 
commercially available. Should they be available immediately at launch 
for new drugs from manufacturers committing to a price over a 
particular lookback period? What should CMS consider doing, under 
current authorities, to create incentives for Part B drugs committing 
to a price over a particular lookback period? How long should the 
lookback period be?
    How could these incentives affect the behavior of manufacturers and 
purchasers? What are the operational concerns to implementing them? Are 
there other incentives that could be created to reward manufacturers of 
drugs that have not taken a price increase during a particular lookback 
period?
    Inflationary rebate limits. The Department is concerned that 
limiting manufacturer rebates on brand and generic drugs in the 
Medicaid program to 100% of calculated AMP allows for excessive price 
increases to be taken without manufacturers facing the full effect of 
the price inflationary penalty established by Congress. This policy, 
implemented as part of the ACA, may allow for runaway price increases 
and cost-shifting. When is this limitation a valid constraint upon the 
rebates manufacturers should pay? What impacts would removing the cap 
on the inflationary rebate have on list prices, price increases over 
time, and public and private payers?
    Exclusion of certain payments, rebates, or discounts from the 
determination of Average Manufacturer Price and Best Price. The 
Department is concerned that excluding pharmacy benefit manager rebates 
from the determination of Best Price, implemented as part of the ACA, 
may allow for runaway price increases and cost-shifting. The Department 
is also interested in learning more about the effect of excluding 
payments received from, and rebates or discounts provided to pharmacy 
benefit managers (PBMs) from the determination of Average Manufacturer 
Price.
    What impacts would these changes have on list prices, price 
increases over time, and public and private payers? What data would 
support or refute the premise described above?
    Copay discount cards. Does the use of manufacturer copay cards help 
lower consumer cost or actually drive increases in manufacturer list 
price? Does the use of copay cards incent manufacturers and PBMs to 
work together in driving up list prices by limiting the transparency of 
the true cost of the drug to the beneficiary? What data would support 
or refute the premise described above?
    CMS regulations presently exclude manufacturer sponsored drug 
discount card programs from the determination of average manufacturer 
price and the determination of best price. What effect would 
eliminating this exclusion have on drug prices?
    Would there be circumstances under which allowing beneficiaries of 
Federal health care programs to utilize copay discount cards would 
advance public health benefits such as medication adherence, and 
outweigh the effects on list price and concerns about program 
integrity? What data would support or refute this?
The 340B Drug Discount Program
    The 340B Drug Pricing Program was established by Congress in 1992, 
and requires drug manufacturers participating in the Medicaid Drug 
Rebate Program to provide covered outpatient drugs to eligible health 
care providers--also known as covered entities--at reduced prices. 
Covered entities include certain qualifying hospitals and Federal 
grantees identified in section 340B of the Public Health Service Act 
(PHSA). The Health Resources and Services Administration (HRSA) 
administers and oversees the 340B program, and the discounts provided 
may affect the prices paid for drugs used by Medicare beneficiaries, 
people with Medicaid, and those covered by commercial insurance.
    Program Growth. The 340B program has grown significantly since 
1992--not only in the number of covered entities and contract 
pharmacies, but also in the amount of money saved by covered entities. 
HRSA estimates that covered entities saved approximately $6 billion on 
approximately $12 billion in discounted purchases in Calendar Year

[[Page 22699]]

(CY) 2015 by participating in the 340B program.\2\ It is estimated that 
discounted drug purchases made by covered entities under the 340B 
program totaled more than $16 billion in 2016--a more than 30 percent 
increase in 340B program purchases in just one year.\3\ How has the 
growth of the 340B drug discount program affected list prices? Has it 
caused cross-subsidization by increasing list prices applicable in the 
commercial sector? What impact has this had on insurers and payers, 
including Part D plans? Does the Group Purchasing Organization (GPO) 
exclusion, the establishment of the Prime Vendor Program, and the 
current inventory models for tracking 340B drugs increase or decrease 
prices? What are the unintended consequences of this program? Would 
explicit general regulatory authority over all elements of the 340B 
Program materially affect the elements of the program affecting drug 
pricing?
---------------------------------------------------------------------------

    \2\ 340B Drug Pricing Program Ceiling Price and Manufacturer 
Civil Monetary Penalties Regulation, 82 FR 1210, 1227 (Jan. 5, 
2017).
    \3\ Aaron Vandervelde and Eleanor Blalock, Measuring the 
Relative Size of the 340B Program: 2012-2017, BERKELEY RESEARCH 
GROUP (July 2017), available at https://www.thinkbrg.[com/media/
publication/928]_Vandervelde_Measuring340Bsize-July-
2017_WEB_FINAL.pdf.
---------------------------------------------------------------------------

    Program Eligibility. Would changing the definition of ``patient'' 
or changing the requirements governing covered entities contracting 
with pharmacies or registering off-site outpatient facilities (i.e., 
child sites) help refocus the program towards its intended purpose?
    Duplicate Discounts. The 340B statute prohibits duplicate 
discounts. Manufacturers are not required to provide a discounted 340B 
price and a Medicaid drug rebate for the same drug. Are the current 
mechanisms for identifying and preventing duplicate discounts 
effective? Are drug companies paying additional rebates over the 
statutory 340B discounts for drugs that have been dispensed to 340B 
patients covered by commercial insurance? What is the impact on drug 
pricing given that private insurers oftentimes pay commercial rates for 
drugs purchased at 340B discounts? Do insurers, pharmacy, PBM, or 
manufacturer contracts consider, address, or otherwise include language 
regarding drugs purchased at 340B discounts? What should be considered 
to improve the management and the integrity of claims for drugs 
provided to 340B patients in the overall insured market? What 
additional oversight or claims standards are necessary to prevent 
duplicate discounts in Medicaid and other programs?

D. Reduce Patient Out-of-Pocket Spending

    Part D end-of-year statement on drug price changes and rebates 
collected. Part D plans presently provide their members with an 
explanation of benefits, which includes information about the 
negotiated price for each of their dispensed prescriptions, and what 
the plan, member, and others paid. What additional information could be 
added about the rate of change in those prices over the course of the 
benefit year? Alternatively, could pharmacists could be empowered to 
inform beneficiaries when prices for their drugs have changed? Would 
this information be best distributed by pharmacists at the point of 
sale, by Medicare as an annual report, or by the health plan on a more 
regular basis, or some combination of these approaches? Could CMS 
improve transparency for Medicare beneficiaries without violating the 
Part D program's confidentiality protections? What operational 
challenges or concerns about burden exist with this approach, and how 
could CMS measure compliance with this approach?
    Federal preemption of contracted pharmacy gag clause laws. Right 
now, some contracts between health plans and pharmacies do not allow 
the pharmacy to inform a patient that the same drug or a competitor 
could be purchased at a lower price off-insurance. What purpose do 
these clauses serve other than to require beneficiaries pay higher out-
of-pocket costs? What other communication barriers are in place between 
pharmacists and patients that could be impeding lower drug prices, out-
of-pocket costs, and spending? Should pharmacists be required to ask 
patients in Federal programs if they'd like information about lower-
cost alternatives? What other strategies might be most effective in 
providing price information to consumers at the point of sale?
    Inform Medicare beneficiaries with Medicare Part B and Part D about 
cost-sharing and lower-cost alternatives. Health plans and pharmacy 
benefit managers have found new ways to inform prescribers and 
pharmacists, when prescribing or dispensing a new prescription, about 
the formulary options, expected cost-sharing, and lower-cost 
alternatives specific to individual patients. How could these tools 
reduce out-of-pocket spending for people with Medicare? Is this 
technology present in all or most electronic prescribing or pharmacy 
dispensing systems? Should Medicare require the use of systems that 
support providing this information to patients? What existing systems, 
tools, or third-party applications could support the creation of these 
tools? Does the technology exist for this approach to be quickly and 
inexpensively implemented? Would this increase costs for the Medicare 
program? Does this create unreasonable burden for prescribers or 
pharmacists?

E. Additional Feedback

    We are interested in all suggestions to improve the affordability 
and accessibility of prescription drugs, including reflections and 
answers to questions not specifically asked above. Whenever possible, 
respondents are asked to draw their responses from objective, 
empirical, and actionable evidence and to cite this evidence within 
their responses.
    What other regulations or government policies may be increasing 
list prices, net prices, and out-of-pocket drug spending? What other 
policies or legislative proposals should HHS consider to lower drug 
prices while encouraging innovation? What data or evidence should HHS 
consider when developing proposals to lower drug prices?
    HHS is actively working to reduce regulatory burdens. To what 
extent do current regulations or government policies related to 
prescription drug pricing impose burden on providers, payers, or 
others? To what extent do the planned actions described in this 
document impose burden, and do these burdens outweigh the benefits?
    This is a request for information only. Respondents are encouraged 
to provide complete but concise responses to the questions outlined 
above. We note that a response to every question is not required. This 
request for information is issued solely for information and planning 
purposes; it does not constitute a notice of proposed rulemaking or 
request for proposals, applications, proposal abstracts, or quotations. 
This request for information does not commit the United States 
Government (``Government'') to contract for any supplies or services or 
make a grant award. Further, HHS is not seeking proposals through this 
request for information and will not accept unsolicited proposals. 
Respondents are advised that the Government will not pay for any 
information or administrative costs incurred in response to this 
request for information; all costs associated with responding to this 
request for information will be solely at the interested party's 
expense.

[[Page 22700]]

Not responding to this request for information does not preclude 
participation in any future rulemaking or procurement, if conducted. It 
is the responsibility of the potential responders to monitor this 
request for information announcement for additional information 
pertaining to this request. We also note that HHS may not respond to 
questions about the policy issues raised in this request for 
information. HHS may or may not choose to contact individual 
responders. Such communications would only serve to further clarify 
written responses. Contractor support personnel may be used to review 
request for information responses. Responses to this notice are not 
offers and cannot be accepted by the Government to form a binding 
contract or issue a grant. Information obtained as a result of this 
request for information may be used by the Government for program 
planning on a non-attribution basis. Respondents should not include any 
information that might be considered proprietary or confidential. This 
request for information should not be construed as a commitment or 
authorization to incur cost for which reimbursement would be required 
or sought. All submissions become Government property and will not be 
returned. HHS may publicly post the comments received, or a summary 
thereof. While responses to this request for information do not bind 
HHS to any further actions related to the response, all submissions 
will be made publicly available on http://www.regulations.gov.

IV. Collection of Information Requirements

    This document does not impose information collection requirements, 
that is, reporting, recordkeeping or third-party disclosure 
requirements. This request for information constitutes a general 
solicitation of comments. In accordance with the implementing 
regulations of the Paperwork Reduction Act (PRA) at 5 CFR 1320.3(h)(4), 
information subject to the PRA does not generally include ``facts or 
opinions submitted in response to general solicitations of comments 
from the public, published in the Federal Register or other 
publications, regardless of the form or format thereof, provided that 
no person is required to supply specific information pertaining to the 
commenter, other than that necessary for self-identification, as a 
condition of the agency's full consideration of the comment.'' 
Consequently, this document need not be reviewed by the Office of 
Management and Budget under the authority of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.).

    Dated: May 11, 2018.
Alex M. Azar II,
Secretary, Department of Health and Human Services.
[FR Doc. 2018-10435 Filed 5-14-18; 11:15 am]
 BILLING CODE 4150-03-P



                                                22692                                   Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

                                                relationships between grantees and                                          network to depict how grantee and                               and identify potential opportunities for
                                                subrecipients. With this data, the                                          subrecipient organizations collaborate                          improving the efficiency of the network.
                                                contractor, to inform ASPE and ACF,                                         with one another through TVAP to                                ASPE anticipates completion of all data
                                                will build a social/organizational                                          better understand the existing network                          collection activities by October 2018.

                                                                                                                           ESTIMATED ANNUALIZED BURDEN TABLE
                                                                                                                                                                                                                Average
                                                                                                                                                                                             Number
                                                                                                                                                                          Number of                           burden per     Total burden
                                                                                           Type of respondent                                                                            responses per
                                                                                                                                                                         respondents                           response         hours
                                                                                                                                                                                           respondent          (in hours)

                                                TVAP grantees ................................................................................................                       3                 1             45/60            2.25
                                                TVAP Subrecipients .........................................................................................                       253                 1             45/60          189.75

                                                      Total ..........................................................................................................             256                 1             45/60             192



                                                Terry Clark,                                                                SUPPLEMENTARY INFORMATION:      The                             increase fair market access for American
                                                Asst. Paperwork Reduction Act Reports                                       United States is the world’s leader in                          innovators. Furthermore, HHS seeks to
                                                Clearance Officer, Office of the Secretary.                                 biopharmaceutical innovation.                                   identify when developed nations are
                                                [FR Doc. 2018–10394 Filed 5–15–18; 8:45 am]                                 American innovation has improved                                paying less for drugs than the prices
                                                BILLING CODE 4151–05–P                                                      health and quality of life for billions of                      paid by Federal health programs, and
                                                                                                                            people, and was made possible by our                            correct these inequities through better
                                                                                                                            intellectual property system, decades of                        negotiation.
                                                DEPARTMENT OF HEALTH AND                                                    government and privately-funded                                    HHS has already acted to increase the
                                                HUMAN SERVICES                                                              research, strong capital markets, and the                       affordability of medicines for millions of
                                                                                                                            world’s largest scientific research base.                       our citizens, but is also going much
                                                Office of the Secretary                                                     By rewarding innovation through patent                          further in response to President Trump’s
                                                                                                                            and data protection, American                                   call to action. Through the work of the
                                                RIN 0991–ZA49
                                                                                                                            companies hold the intellectual                                 Food and Drug Administration and the
                                                HHS Blueprint to Lower Drug Prices                                          property rights for most new, and                               Centers for Medicare & Medicaid
                                                and Reduce Out-of-Pocket Costs                                              potentially life changing, medicines.                           Services, HHS has tremendous ability to
                                                                                                                            Our regulatory system is the most                               change how drugs are developed and
                                                AGENCY:  Department of Health and                                           rigorous in the world, ensuring the                             paid for in the United States.
                                                Human Services.                                                             safety and efficacy of drugs for                                   The status quo is no longer
                                                ACTION: Policy Statement; Request for                                       American patients. Medicare, Medicaid,                          acceptable. Millions of Americans face
                                                information.                                                                other Federal health programs, and                              soaring drug prices and higher out-of-
                                                                                                                            private payers ensure Americans have                            pocket costs, while manufacturers and
                                                SUMMARY:    Through this request for                                        access to medicines, from innovative                            middlemen such as pharmacy benefit
                                                information, HHS seeks comment from                                         new cures, to generic versions of                               managers (PBMs) and distributors
                                                interested parties to help shape future                                     medications that have markedly                                  benefit from rising list prices and their
                                                policy development and agency action.                                       lowered costs for consumers.                                    resulting higher rebates and
                                                DATES: Comments must be submitted on                                           As part of President Trump’s bold                            administrative fees. An unprecedented
                                                or before July 16, 2018.                                                    plan to put American patients first, the                        re-examination of the whole system and
                                                ADDRESSES: You may submit comments
                                                                                                                            Department of Health and Human                                  opportunities for reform is long
                                                in one of three ways (please choose only                                    Services has developed a                                        overdue. We believe a national focus on
                                                one of the ways listed):                                                    comprehensive blueprint that addresses                          lowering list prices and out-of-pocket
                                                   1. Electronically. You may submit                                        many of the challenges and                                      costs has the potential to create new and
                                                electronic comments to http://                                              opportunities impacting American                                disruptive alternatives to the current
                                                www.regulations.gov. Follow the                                             patients and consumers. The blueprint                           system, while maintaining its many
                                                ‘‘Submit a comment’’ instructions.                                          covers multiple areas including, but not                        virtues. It is time to realign the system
                                                   2. By regular mail. You may mail                                         limited to:                                                     in a way that promotes the development
                                                                                                                               • Improving competition and ending                           of affordable innovations that improve
                                                written comments to the following
                                                                                                                            the gaming of the regulatory process,                           health outcomes and lower both out-of-
                                                address ONLY: Department of Health                                             • supporting better negotiation of
                                                and Human Services, 200 Independence                                                                                                        pocket cost and the total cost of care.
                                                                                                                            drug discounts in government-funded                                Through this request for information,
                                                Ave. SW, Room 600E, Washington, DC                                          insurance programs,
                                                20201.                                                                                                                                      HHS seeks comment from interested
                                                                                                                               • creating incentives for                                    parties to help shape future policy
                                                   Please allow sufficient time for mailed                                  pharmaceutical companies to lower list
                                                comments to be received before the                                                                                                          development and agency action.
                                                                                                                            prices, and,
                                                close of the comment period.                                                   • reducing out-of-pocket spending for                        Table of Contents:
                                                   3. By express or overnight mail. You
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                            patients at the pharmacy and other sites
                                                may send written comments to the                                            of care.                                                        I. Previous Actions by the Trump
                                                following address ONLY: Department of                                          HHS also recognizes that achieving                                Administration
                                                Health and Human Services, 200                                                                                                                 A. Increasing Competition
                                                                                                                            the goal of putting American patients                              B. Better Negotiation
                                                Independence Ave. SW, Room 600E,                                            first will require interagency                                     C. Creating Incentives to Lower List Prices
                                                Washington, DC 20201.                                                       collaboration on pharmaceutical trade                              D. Reducing Patient Out-of-Pocket
                                                FOR FURTHER INFORMATION CONTACT: John                                       policies that promote innovation, and                                Spending
                                                O’Brien, (202) 690–7886.                                                    are transparent, nondiscriminatory, and                         II. Responding to President Trump’s Call to



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                                                                             Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices                                                   22693

                                                      Action                                            taken steps to prioritize its review of                  • Finalizing changes to the Medicare
                                                   A. Increasing Competition                            generic drug applications; issued                     Prescription Drug Program in the 2019
                                                   B. Better Negotiation                                guidance to improve efficiencies in the               Part C and Part D regulation allowing for
                                                   C. Creating Incentives to Lower List Prices          development, review, and approval                     faster mid-year substitution of generic
                                                   D. Reducing Patient Out-of-Pocket
                                                      Spending
                                                                                                        processes for generic drugs, including                drugs onto formularies.
                                                III. Solicitation of Comments                           complex generic drugs; and issued                        • Proposing in the President’s
                                                   A. Increasing Competition                            guidance to further streamline the                    FY2019 Budget 1 a 5-part plan to
                                                   B. Better Negotiation                                submission and review process for                     modernize the Medicare Part D program,
                                                   C. Creating Incentives to Lower List Prices          shared system REMS, and to allow                      a portion of which includes enhancing
                                                   D. Reducing Patient Out-of-Pocket                    collective submissions to streamline the              Part D plans’ negotiating power with
                                                      Spending                                          review of shared Risk Evaluation and                  manufacturers by changing Part D plan
                                                   E. Additional Feedback                               Mitigation Strategies (REMS).                         formulary standards to require a
                                                IV. Collection of Information Requirements                 • FDA also announced it will                       minimum of one drug per category or
                                                I. Previous Actions by the Trump                        facilitate opportunities for enhanced                 class rather than two. We note that the
                                                Administration                                          information sharing between                           5-part plan is intended to be
                                                                                                        manufacturers, doctors, patients and                  implemented together, as eliminating
                                                   The President has consistently                       insurers to improve patient access to                 even one piece of the package
                                                emphasized the need to reduce the price                 medical products, including through                   significantly changes the proposal’s
                                                of prescription drugs. The Trump                        value-based insurance.                                impacts.
                                                Administration has already taken a                         • Speeding Access to More                             • Proposing in the President’s
                                                number of significant administrative                    Affordable Generics by Spurring                       FY2019 Budget to address abusive drug
                                                steps, and proposed in the President’s                  Competition. Today, a generic                         pricing by manufacturers by:
                                                FY2019 Budget, to improve competition                   manufacturer that has been awarded                    establishing an inflation limit for
                                                and end the gaming of regulatory                        180-day exclusivity for being the first               reimbursement of Medicare Part B
                                                processes, support better negotiation of                generic to file can ‘‘park’’ their                    drugs; reducing Wholesale Acquisition
                                                drug discounts through government                       application with FDA, preventing                      Cost (WAC)-Based Payment when
                                                insurance programs, create incentives                   additional generic manufacturers from                 Average Sales Price (ASP) isn’t
                                                for pharmaceutical companies to lower                   entering the market. The President’s                  available; and improving manufacturers’
                                                list prices, and reduce consumer out-of-                FY2019 Budget proposes to prevent                     reporting of Average Sales Prices to set
                                                pocket spending at the pharmacy and                     companies from using their 180-day                    accurate payment rates.
                                                other care settings.                                    exclusivity to indefinitely delay real                   • Increasing the integrity of the
                                                A. Increasing Competition                               competition and savings for consumers                 Medicaid Drug Rebate Program, so that
                                                                                                        by seeking a legislative change to start              manufacturers pay their fair share in
                                                   Since the beginning of the Trump                     a company’s 180-day exclusivity clock                 rebates, by proposing in the President’s
                                                Administration, HHS has taken a                         in certain instances when another                     FY2019 Budget to remove ambiguity
                                                number of actions to increase                           generic application is ready for                      regarding how drugs should be reported
                                                competition and end the gaming of                       approval, but is blocked solely by such               under the program. HHS is also
                                                regulatory processes that may keep drug                 a first applicant’s 180-day exclusivity.              manually reviewing each new drug that
                                                prices artificially inflated or hinder                     • Finalizing a policy in which each                has been reported in the Medicaid
                                                generic, branded, or biosimilar                         biosimilar for a given biologic gets its              rebate system on a quarterly basis to
                                                competition. These efforts include:                     own billing and payment code under                    make sure classifications are correct,
                                                   • Accelerating Food and Drug                         Medicare Part B, to incentivize                       and the United States took legal action
                                                Administration (FDA) approval of                        development of additional lower-cost                  against Mylan for their misclassification
                                                generic drugs. Studies show that greater                biosimilars. Prior approaches to                      of EpiPen, resulting in an agreement for
                                                generic competition is associated with                  biosimilar coding and payment would                   Mylan to pay back $465 million in
                                                lower prices. FDA is publishing the                     have created a race to the bottom of                  rebate payments.
                                                names of drugs that have no competitors                 biosimilar pricing, while leaving the                    • Proposing in the President’s
                                                in order to spur new entrants and bring                 branded product untouched, making it                  FY2019 Budget to further clarify the
                                                prices down. Over 1,000 generic drugs                   an unviable market that few would want                Medicaid definition of brand drugs,
                                                were approved in 2017, which is the                     to enter.                                             which would address inappropriate
                                                most in FDA’s history in a calendar year                                                                      interpretations leading some
                                                by over 200 drugs. These generic                        B. Better Negotiation
                                                                                                                                                              manufacturers to classify certain brand
                                                approvals saved American consumers                        Medicare Part D has been very                       and over-the-counter drugs as generics
                                                and taxpayers nearly $9 billion in 2017.                successful since it launched in 2006.                 for Medicaid rebate purposes, reducing
                                                   • Drug Competition Action Plan. In                   However, prescription drug markets are                the rebates they owe.
                                                2017, President Trump’s FDA                             different than they were 12 years ago,                   • Proposing in the President’s
                                                established a Drug Competition Action                   and in some cases Part D plan sponsors                FY2019 Budget to call for new Medicaid
                                                Plan to enable patients to access more                  may be prohibited from doing what                     demonstration authority for up to five
                                                affordable medications by focusing the                  private payers outside the Medicare                   states to test drug coverage and
                                                Agency’s efforts in three key areas: (1)                program do to negotiate effectively and               financing reforms that build on private
                                                Improving the efficiency of the generic                 keep costs low. More can also be done                 sector best practices. Participating states
                                                drug development, review, and approval
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                                                                                                        across the Medicare program to provide                would determine their own drug
                                                process; (2) maximizing scientific and                  beneficiaries with the lower costs and                formularies, coupled with an appeals
                                                regulatory clarity with respect to                      greater price transparency resulting                  process to protect beneficiary access to
                                                complex generic drugs; and (3) closing                  from better negotiation.                              non-covered drugs based on medical
                                                loopholes that allow brand-name drug                      Since the beginning of the Trump                    need, and negotiate drug prices directly
                                                companies to ‘‘game’’ FDA rules in ways                 Administration, HHS has taken a
                                                that forestall the generic competition                  number of actions to support better                     1 https://www.whitehouse.gov/wp-content/

                                                Congress intended. The Agency also has                  negotiation. These efforts include:                   uploads/2018/02/budget-fy2019.pdf.



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                                                22694                        Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

                                                with manufacturers. HHS and                             D. Reducing Patient Out-of-Pocket                     II. Responding to President Trump’s
                                                participating states would rigorously                   Spending                                              Call to Action
                                                evaluate these demonstrations, which                                                                             President Trump recently reaffirmed
                                                would provide states with new tools to                     American patients have the right to
                                                                                                        know what their prescription drugs will               his commitment to reducing the price of
                                                control drug costs and tailor drug                                                                            prescription drugs, and called on the
                                                coverage decisions to state needs.                      really cost before they get to the
                                                                                                        pharmacy or get the drug. Too many                    Administration to propose new
                                                  • Proposing in the President’s                        people abandon their prescriptions at                 strategies and take bold actions to
                                                FY2019 Budget to authorize the HHS                                                                            improve competition and end the
                                                                                                        the pharmacy when they discover the
                                                Secretary to leverage Medicare Part D                                                                         gaming of regulatory processes, support
                                                                                                        price is too high, and too many patients
                                                plans’ negotiating power for certain                                                                          better negotiation of drug discounts
                                                                                                        are never informed of lower cost
                                                drugs covered under Part B.                                                                                   through government insurance
                                                                                                        options.
                                                  • Addressing price disparities in the                                                                       programs, create incentives for
                                                                                                           Since the beginning of the Trump                   pharmaceutical companies to lower list
                                                international market. The
                                                                                                        Administration, HHS has taken a                       prices, and reduce consumer out-of-
                                                Administration is updating a number of
                                                                                                        number of steps to lower consumer out-                pocket spending at the pharmacy and
                                                historical studies to analyze drug prices
                                                                                                        of-pocket spending and improve                        other care settings. HHS may undertake
                                                paid in countries that are a part of the
                                                                                                        transparency. These efforts include:                  these and other actions, to the extent
                                                Organisation for Economic Co-operation
                                                and Development (OECD).                                    • Finalizing Medicare Outpatient                   permitted by law, in response to
                                                                                                        Prospective Payment System (OPPS)                     President Trump’s call to action.
                                                C. Creating Incentives to Lower List                    rules to reduce beneficiary out-of-pocket             A. Improve Competition
                                                Prices                                                  spending for 340B drugs administered
                                                                                                        in certain hospitals by an estimated                     In response to President Trump’s call
                                                   The list price of a drug does not                                                                          to action, HHS may support improved
                                                reflect the discounts or price                          $320 million in 2018, which would
                                                                                                        equal $3.2 billion when multiplied over               competition by:
                                                concessions paid to a PBM, insurer,                                                                              • Taking steps to prevent gaming of
                                                health plan, or government program.                     ten years.
                                                                                                                                                              regulatory processes: FDA will issue
                                                Obscuring these discounts can shift                        • Seeking information about changes                guidance to address some of the ways in
                                                costs to consumers in commercial                        in the Medicare Prescription Drug                     which manufacturers may seek to use
                                                health plans and Medicare beneficiaries.                Program regulations for contract year                 shared system REMS to delay or block
                                                Many incentives in the current system                   2019 that would increase transparency                 competition from generic products
                                                reward higher list prices, and HHS is                   for people with Medicare prescription                 entering the market.
                                                interested in creating new incentives to                drug coverage. The proposed rule                         • Promoting innovation and
                                                reward drug manufacturers that lower                    included a Request for Information                    competition for biologics. FDA will
                                                list prices or do not increase them.                    soliciting comment on potential policy                issue new policies to improve the
                                                   Since the beginning of the Trump                     approaches for applying some                          availability, competitiveness, and
                                                Administration, HHS has taken a                         manufacturer rebates and all pharmacy                 adoption of biosimilars as affordable
                                                number of actions to create incentives to               price concessions to the price of a drug              alternatives to branded biologics. FDA
                                                lower list prices. These efforts include:               at the point of sale.                                 will also continue to educate clinicians,
                                                                                                           • Finalizing changes to the Medicare               patients, and payors about biosimilar
                                                   • Proposing in the President’s                                                                             and interchangeable products as we
                                                FY2019 budget a 5-part plan to                          Prescription Drug Program in the 2019
                                                                                                        Part C and Part D regulation allowing                 seek to increase awareness about these
                                                modernize the Medicare Part D program,                                                                        important new treatments.
                                                a portion of which includes the                         Medicare beneficiaries receiving low-
                                                exclusion of manufacturer discounts                     income subsidies to access biosimilars                B. Better Negotiation
                                                from the calculation of beneficiary out-                at a lower cost.
                                                                                                                                                                In response to President Trump’s call
                                                of-pocket costs in the Medicare Part D                     • Proposing in the President’s                     to action, HHS may support better
                                                coverage gap, and the establishment of                  FY2019 Budget a 5-part plan to                        negotiation by:
                                                a beneficiary out-of-pocket maximum in                  modernize the Medicare Part D program,                  • Directing CMS to develop
                                                the Medicare Part D catastrophic phase                  a portion of which includes eliminating               demonstration projects to test
                                                to reduce out-of-pocket spending for                    cost-sharing on generic drugs for low-                innovative ways to encourage value-
                                                beneficiaries who spend the most on                     income beneficiaries and requiring                    based care and lower drug prices. These
                                                drugs. The changes in the catastrophic                  Medicare Part D plans to apply a                      models should hold manufacturers
                                                phase would shift more responsibility                   substantial portion of rebates at the                 accountable for outcomes, align with
                                                onto plans, creating incentives for plans               point of sale. We note that the 5-part                CMS’s priorities of value over volume
                                                to negotiate with manufacturers to lower                plan is intended to be implemented                    and site-neutral payments, and provide
                                                prices for high-cost drugs. We note that                together, as eliminating even one piece               Medicare providers, payers, and states
                                                the 5-part plan is intended to be                       of the package significantly changes the              with additional tools to manage
                                                implemented together, as eliminating                    proposal’s impacts. We also note that in              spending for high-cost therapies.
                                                even one piece of the package                           the months following this Part D                        • Allowing Part D plans to adjust
                                                significantly changes the proposal’s                    proposed rule and the President’s                     formulary or benefit design during the
                                                impacts.                                                budget proposal that included this                    benefit year if necessary to address a
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                                                   • In addition, the President’s FY2019                policy change explicitly, several major               price increase for a sole source generic
                                                Budget proposes reforms to improve                      insurers and pharmacy benefit managers                drug. Presently, Part D plans do not
                                                340B Program integrity and ensure that                  announced they would pass along a                     contract with generic drug
                                                the benefits derived from participation                 portion of rebates to individual                      manufacturers for the purchase of
                                                in the program are used to benefit                      members in their fully-insured                        generic drugs, and generally are not
                                                patients, especially low-income and                     populations or when otherwise                         permitted to change their formulary or
                                                uninsured populations.                                  requested by employers.                               benefit design without CMS approval in


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                                                                             Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices                                             22695

                                                response to a price increase. This                        • Working in conjunction with the                   negotiation of drug discounts through
                                                change could ensure Part D plans can                    Department of Commerce the U.S. Trade                 government insurance programs, create
                                                respond to a price increase by the only                 Representative, and the U.S. Intellectual             incentives for pharmaceutical
                                                manufacturer of a generic drug.                         Property Enforcement Coordinator to                   companies to lower list prices, and
                                                   • Providing plans full flexibility to                develop the knowledge base necessary                  reduce consumer out-of-pocket
                                                manage high cost drugs that do not                      to address the unfair disparity between               spending at the pharmacy and other
                                                provide Part D plans with rebates or                    the drug prices in America and other                  care settings. HHS is also interested in
                                                negotiated fixed prices, including in the               developed countries. The Trump                        public comments about the general
                                                protected classes. Presently, Part D                    Administration is committed to making                 structure and function of the
                                                plans are unable to negotiate lower                     the appropriate regulatory changes and                pharmaceutical market, to inform these
                                                prices for high-cost drugs without                      seeking legislative solutions to put                  actions. Proposals described in this
                                                competition. This change could allow                    American patients first.                              section are for administrative action,
                                                Part D plans to use the tools available                                                                       when within agency authority, and
                                                                                                        C. Lowering List Prices                               legislative proposals as necessary.
                                                to private payers outside of the
                                                Medicare program to better negotiate for                  In response to President Trump’s call                  In this Request for Information, HHS
                                                these drugs.                                            to action, HHS may:                                   is soliciting comments on these and
                                                   • Updating the methodology used to                     • Call on the FDA to evaluate the                   other policies under active
                                                calculate Drug Plan Customer Service                    inclusion of list prices in direct-to-                consideration.
                                                star ratings for plans that are                         consumer advertising.
                                                                                                                                                              A. Increasing competition
                                                appropriately managing utilization of                     • Direct the Centers for Medicare &
                                                                                                        Medicaid Services to make Medicare                      Underpricing or Cost-Shifting. Do
                                                high-cost drugs. Presently, if a Part D
                                                                                                        and Medicaid prices more transparent,                 HHS programs contain the correct
                                                plan issues an adverse redetermination                                                                        incentives to obtain affordable prices on
                                                decision, the enrollee, the enrollee’s                  hold drug makers accountable for their
                                                                                                        price increases, highlight drugs that                 safe and effective drugs? Does the Best
                                                representative or the enrollee’s                                                                              Price reporting requirement of the
                                                prescriber may appeal the decision to                   have not taken price increases, and
                                                                                                        recognize when competition is working                 Medicaid Drug Rebate Program pose a
                                                the Independent Review Entity (IRE).                                                                          barrier to price negotiation and certain
                                                This process may discourage Part D plan                 with an updated drug pricing
                                                                                                        dashboard. This tool will also provide                value-based agreements in other
                                                sponsors from appropriately managing                                                                          markets, or otherwise shift costs to other
                                                utilization of high-cost drugs. This                    patients, families, and caregivers with
                                                                                                        additional information to make                        markets? Are government programs
                                                change could provide Part D plan                                                                              causing underpricing of generic drugs,
                                                sponsors with the ability to                            informed decisions and predict their
                                                                                                        cost sharing.                                         and thereby reducing long-term generic
                                                appropriately manage high-cost
                                                changes, while holding sponsors                           • Develop proposals related to the                  competition?
                                                                                                        Affordable Care Act’s Maximum Rebate                    Affordable Care Act Taxes and
                                                accountable primarily using other                                                                             Rebates. The Affordable Care Act
                                                successful enforcement mechanisms.                      Amount provision, which limits
                                                                                                        manufacturer rebates on brand and                     imposed tens of billions of dollars in
                                                   • Evaluating options to allow high-                                                                        new taxes and costs on drugs sold in
                                                                                                        generic drugs in the Medicaid program
                                                cost drugs to be priced or covered                                                                            government programs through a new
                                                                                                        to 100% of the Average Manufacturer
                                                differently based on their indication.                                                                        excise tax, an increase in the Medicaid
                                                                                                        Price.
                                                Presently, Part D plans must cover and                                                                        drug rebate amounts, and an extension
                                                pay the same price for a drug regardless                D. Reduce Patient Out-of-Pocket                       of these higher rebates to commercially-
                                                of the indication for which it was                      Spending                                              run Medicaid Managed Care
                                                prescribed. This change could permit                       In response to President Trump’s call              Organizations. How have these changes
                                                Part D plans to choose to cover or pay                  for action, HHS may:                                  impacted manufacturer list pricing
                                                a different price for a drug, based on the                 • Prohibit Part D plan contracts from              practices? Are government programs
                                                indication.                                             preventing pharmacists from telling                   being cross-subsidized by higher list
                                                   • Sending the President a report                     patients when they could pay less out-                prices and excess costs paid by
                                                identifying particular drugs or classes of              of-pocket by not using their insurance—               individuals and employers in the
                                                drugs in Part B where there are savings                 also known as pharmacy gag clauses.                   commercial market? If cross-
                                                to be gained by moving them to Part D.                     • Require Part D Plan sponsors to                  subsidization exists, are the taxes and
                                                   • Taking steps to leverage the                       provide additional information about                  artificially-depressed prices causing
                                                authority created by the Competitive                    drug price increases and lower-cost                   higher overall drug costs or other
                                                Acquisition Program (CAP) for Part B                    alternatives in the Explanation of                    negative effects?
                                                Drugs & Biologicals. This program will                  Benefits they currently provide their
                                                generally provide physicians a choice                                                                         Access to Reference Product Samples
                                                                                                        members.
                                                between obtaining these drugs from                                                                              Distribution restrictions. Certain
                                                vendors selected through a competitive                  III. Solicitation of Comments                         prescription drugs are subject to
                                                bidding process or directly purchasing                     Building on the ideas already                      limitations on distribution. Some of
                                                these drugs and being paid under the                    proposed, HHS is considering even                     these distribution limitations are
                                                current average sales price (ASP)                       bolder actions to bring down prices for               imposed by the manufacturer, while
                                                methodology. The CAP, or a model                        patients and taxpayers. These include                 others may be imposed in connection
                                                building on CAP authority, may provide                  new measures to increase transparency;                with an FDA-mandated Risk Evaluation
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                                                opportunities for Federal savings to the                fix the incentives that may be increasing             and Mitigation Strategy (REMS). Some
                                                extent that aggregate bid prices are less               prices for patients; and reduce the costs             manufacturers may be gaming these
                                                than 106 percent of ASP, and provides                   of drug development. HHS is interested                distribution limitations to prevent
                                                opportunities for physicians who do not                 in public comments about how the                      generic developers from accessing their
                                                wish to bear the financial burdens and                  Department can take action to improve                 drugs to conduct the tests that are
                                                risk associated with being in the                       competition and end the gaming of                     legally required for a generic drug to be
                                                business of drug acquisition.                           regulatory processes, support better                  brought to market, thereby limiting


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                                                22696                        Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

                                                opportunities for competition that could                manufacturers, and other stakeholders?                would these exclusions affect Average
                                                place downward pressure on drug                         What additional information could be                  Sales Price (ASP) and 340B Ceiling
                                                prices. In some instances, for products                 added to increase the utility of the                  Prices? What benefits would accrue to
                                                that are subject to REMS that impact                    Purple Book?                                          Medicare and Medicaid beneficiaries by
                                                distribution, manufacturers continue to                    Educating providers and patients.                  extending the time for manufacturers to
                                                restrict access to generic developers                   Physician and patient confidence in                   report restatements of AMP and/or BP
                                                even after the FDA issues a letter stating              biosimilar and interchangeable products               reporting, as outlined in 42 CFR
                                                that it has favorably evaluated the                     is critical to the increased market                   447.510, to accommodate adjustments
                                                developer’s proposed safety protections                 acceptance of these products. FDA                     because of possible extended VBP
                                                for testing and would not consider the                  intends to build on the momentum of                   evaluation timeframes? Is there a
                                                provision of drug samples to this                       past education efforts, such as the                   timeframe CMS should consider that
                                                developer for generic development to                    launch of its Biosimilars Education and               will allow manufacturers to restate AMP
                                                violate the applicable REMS. Should                     Outreach Campaign in 2017, by                         and BP without negative impact on state
                                                additional steps be taken to review                     developing additional resources for
                                                                                                                                                              rebate revenue? What modifications
                                                existing REMS to determine whether                      health care professionals and patients.
                                                                                                                                                              could be made to the following
                                                distribution restrictions are appropriate?              What types of information and
                                                                                                                                                              regulatory definitions in the current
                                                Are there terms that could be included                  educational resources on biosimilar and
                                                                                                        interchangeable products would be most                Medicaid Drug Rebate Program that
                                                in REMS, or provided in addition to
                                                                                                        useful to heath care professionals and                could facilitate the development of VBP
                                                REMS, that could expand access to
                                                                                                        patients to promote understanding of                  arrangements: (1) Bundled sale; (2) free
                                                products necessary for generic
                                                development? Are there other steps that                 these products? What role could state                 good; (3) unit; or (4) best price? Would
                                                could be taken to facilitate access to                  pharmacy practice acts play in                        providing specific AMP/BP exclusions
                                                products that are under distribution                    advancing the utilization of biosimilar               for VBP pricing used for orphan drugs
                                                limitations imposed by the                              products?                                             help manufacturers that cannot adopt a
                                                manufacturer?                                              Interchangeability. How could the                  bundled sale approach? What regulatory
                                                  Samples for biosimilars and                           interchangeability of biosimilars be                  changes would Medicaid Managed Care
                                                interchangeables. Like some generic                     improved, and what effects would it                   organizations find helpful in negotiating
                                                drug developers, companies engaged in                   have on the prescribing, dispensing, and              VBP supplemental rebates with
                                                biosimilar and interchangeable product                  coverage of biosimilar and                            manufacturers? How would these
                                                development may encounter difficulties                  interchangeable products?                             changes affect Medicare or the 340B
                                                obtaining sufficient samples of the                                                                           program? Are there particular sections
                                                                                                        B. Better Negotiation
                                                reference product for testing. What                                                                           of the Social Security Act (e.g., the anti-
                                                actions should be considered to                            The American pharmaceutical                        kickback statute), or other statutes and
                                                facilitate access to reference product                  marketplace is built on innovation and                regulations that can be revised to assist
                                                samples by these companies?                             competition. However, regulations                     with manufacturers’ and states’
                                                                                                        governing how Medicare and Medicaid                   adoption of value-based arrangements?
                                                Biosimilar Development, Approval,                       pay for prescription drugs have not kept              Please provide specific citations and an
                                                Education, and Access                                   pace with the availability of new types               explanation of how these changes
                                                   Resources and tools from FDA: FDA                    of drugs, particularly higher-cost                    would assist states and manufacturers in
                                                prioritizes ongoing efforts to improve                  curative therapies intended for use by                participating in VBP arrangements.
                                                the efficiency of the biosimilar and                    fewer patients. Drug companies,
                                                interchangeable product development                     commercial insurers, and states have                     Indication-Based Payments.
                                                and approval process. For example,                      proposed creative approaches to                       Prescription drugs have varying degrees
                                                FDA is working to identify areas in                     financing these new treatments,                       of effectiveness when used to treat
                                                which additional information resources                  including indication-based pricing,                   different types of disease. Though drugs
                                                or development tools may facilitate the                 outcomes-based contracts, long-term                   may be approved by the FDA to treat
                                                development of high quality biosimilar                  financing models, and others. Value-                  specific indications, or used off-label by
                                                and interchangeable products. What                      based transformation of our entire                    prescribers to treat others, they are
                                                specific types of information resources                 healthcare system is a top HHS priority.              typically subject to the same price.
                                                or development tools would be most                      Improving price transparency is an                    Should Medicare or Medicaid pay the
                                                effective in reducing the development                   important part of achieving this aim.                 same price for a drug regardless of the
                                                costs for biosimilar and interchangeable                What steps can be taken to improve                    diagnosis for which it is being used?
                                                products?                                               price transparency in Medicare,                       How could indication-based pricing
                                                   Improving the Purple Book. In the                    Medicaid, and other forms of health                   support value-based purchasing? What
                                                Purple Book, FDA publishes                              coverage, so that consumers can seek                  lessons could be learned from private
                                                information about biological products                   value when choosing and using their                   health plans? Are there unintended
                                                licensed under section 351 of the Public                benefits?                                             consequences of current low-cost drugs
                                                Health Service Act, including reference                    Value-Based Arrangements and Price                 increasing in price due to their
                                                products, biosimilars, and                              Reporting. What benefits would accrue                 identification as high value? How and
                                                interchangeable products. The Purple                    to Medicare and Medicaid beneficiaries                by whom should value be determined??
                                                Book provides information about these                   by allowing manufacturers to exclude                  Is there enough granularity in coding
                                                products that is useful to prescribers,                 from statutory price reporting programs               and reimbursement systems to support
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                                                pharmacists, patients, and other                        discounts, rebates, or price guarantees               indication-based pricing? Are changes
                                                stakeholders. FDA is committed to the                   included in value-based arrangements?                 necessary to CMS’s price reporting
                                                timely publication of certain                           How would excluding these approaches                  program definitions or how the FDA’s
                                                information about reference product                     from Average Manufacturer Price (AMP)                 National Drug Code numbers are used in
                                                exclusivity in the Purple Book. How                     and Best Price (BP) calculations impact               CMS price reporting programs? Do
                                                could the Purple Book be more useful to                 the Medicaid Drug Rebate program and                  physicians, pharmacists, and insurers
                                                health care professionals, patients,                    supplemental rebate revenue? How                      have access to all the information they


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                                                                             Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices                                              22697

                                                need to support indication-based                        prescription drug coverage, or those                  Beneficiaries also have different cost-
                                                payments?                                               who have Medicare supplemental                        sharing requirements in Part A and Part
                                                   Long-term Financing Models. States                   benefits in Part B? What additional                   B. Some drugs can be administered in
                                                and other payers typically establish                    information would inform how this                     either the inpatient or outpatient setting,
                                                budgets or premium rates for a given                    proposal could be implemented and                     while others are currently limited to
                                                benefit year. As such, their budgets may                operated?                                             inpatient use because of safety concerns.
                                                be challenged when a new high-cost                         Part B drugs are reportedly available              Do the differences between Medicare’s
                                                drug unexpectedly becomes available in                  to OECD nations at lower prices than                  Part A and Part B drug payment policies
                                                the benefit year. Long-term financing                   those paid by Medicare Part B                         create affordability and access
                                                models are being proposed to help                       providers. HHS is interested in                       challenges for beneficiaries? What
                                                states, insurers, and consumers pay for                 receiving data describing the differences             policies should CMS consider to ensure
                                                high-cost treatments by spreading                       between the list prices and net prices                inpatient and outpatient providers are
                                                payments over multiple years. Should                    paid by Medicare Part B providers, and                neither underpaid nor overpaid for a
                                                the state, insurer, drug manufacturer, or               the prices paid for these same drugs by               drug, regardless of where it was
                                                other entity bear the risk of receiving                 OECD nations. Though these national                   administered? Which elements of the
                                                future payments? How should Medicare                    health systems may be demanding lower                 inpatient or outpatient setting lead to
                                                or Medicaid account for the cost of                     prices by restricting access or delaying              naturally differential payments, and
                                                disease averted by a curative therapy                   entry, should Part B drugs sold by                    why? If a drug can be used safely in the
                                                paid for by another payer? What                         manufacturers offering lower prices to                outpatient setting, and achieve the same
                                                regulations should CMS consider                         OECD nations be subject to negotiation                outcomes at a lower cost, how should
                                                revising to allow manufacturers and                     by Part D plans? Would this lead to                   Medicare encourage the shift to
                                                states more flexibility to participate in               lower out-of-pocket costs on behalf of                outpatient settings? In what instances
                                                novel value-based pricing                               people with Medicare? How could this                  would inpatient administration actually
                                                arrangements? What effects would these                  affect access to medicines for people                 be less costly?
                                                solutions have on manufacturer                          with Medicare?                                           Accuracy of national spending data.
                                                development decisions? What current                        Fixing Global Freeloading. U.S.                    Are annual reports of health spending
                                                barriers limit the applicability of these               consumers and taxpayers generally pay                 obscuring the true cost of prescription
                                                arrangements in the private sector?                     more for brand drugs than do consumers                drugs? What is the value of better
                                                What assurances would parties need to                   and taxpayers in other OECD countries,                understanding the difference between
                                                participate in more of these                            which often have reimbursements set by                gross and net drug prices? How could
                                                arrangements, particularly with regard                  their central government. In effect, other            the Medicare Trustees Report, annual
                                                to public programs?                                     countries are not paying an appropriate               National Health Expenditure
                                                   Part B Competitive Acquisition                       share of the necessary research and                   publications, Uniform Rate Review
                                                Program. HHS has the authority to                       development to bring innovative drugs                 Template, and other publications more
                                                operate a Competitive Acquisition                       to the market and are instead freeriding              accurately collect and report gross and
                                                Program for Part B drugs. What changes                  off U.S. consumers and taxpayers. What                net drug spending in medical and
                                                would vendors and providers need to                     can be done to reduce the pricing                     pharmacy benefits? Should average Part
                                                see relative to the 2007–2008                           disparity and spread the burden for                   D rebate amounts be reported separately
                                                implementation of this program in order                 incentivizing new drug development                    for small molecule drugs, biologics, and
                                                to successfully participate in the                      more equally between the U.S. and                     high-cost drugs? What innovation is
                                                program? Has the marketplace evolved                    other developed countries? What                       needed to maximize price transparency
                                                such that there would be more vendors                   policies should the U.S. government                   without disclosing proprietary
                                                capable of successfully participating in                pursue in order to protect IP rights and              information or data protected by
                                                this program? Are there a sufficient                    address concerns around compulsory                    confidentiality provisions?
                                                number of providers interested in                       licensing in this area.
                                                having a vendor selected through a                         Site neutrality for physician-                     C. Create Incentives To Lower List Prices
                                                competitive bidding process obtain                      administered drugs. Currently under                      Government programs, commercial
                                                these drugs on their behalf, and bear the               Medicare Part B and often in Medicaid,                insurers, and individual consumers pay
                                                financial risk and carrying costs? How                  hospitals and physicians are reimbursed               for drugs differently. The price paid at
                                                could this program be implemented in                    comparable amounts for drugs they                     the pharmacy counter or reimbursed to
                                                a way that ensures a competitive market                 administer to patients, but the facility              a physician or hospital is the result of
                                                among multiple vendors? Is it necessary                 fees when drugs are administered at                   many different complex financial
                                                that the vendors also hold title to the                 hospitals and hospital-owned outpatient               transactions between drug makers,
                                                drugs and provide a distribution                        departments are many times higher than                distributors, insurers, pharmacy benefits
                                                channel or are there other ways they can                the fees charged by physician offices.                managers, pharmacies and others.
                                                provide value? What other approaches                    What effect would a site neutral                      Public programs are also subject to state
                                                could lower Part B drug spending for                    payment policy for drug administration                and Federal regulations governing what
                                                patients of providers choosing not to                   procedures have on the location of the                drugs are covered, who can be paid for
                                                participate, without restricting their                  practice of medicine? How would this                  them, and how much will be paid. Too
                                                access to care?                                         change affect the organization of health              often, these negotiations do not result in
                                                   Part B to D. The President’s Budget                  care systems? How would this change                   the lowest out-of-pocket costs for
                                                requested the authority to move some
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                                                                                                        affect competition for health care                    consumers, and may actually be causing
                                                Medicare Part B drugs to Medicare Part                  services, particularly for cancer care?               higher list prices.
                                                D. Which drugs or classes of drugs                         Site neutrality between inpatient and                 Fiduciary duty for Pharmacy Benefit
                                                would be good candidates for moving                     outpatient setting. Medicare payment                  Managers. Pharmacy Benefit Managers
                                                from Part B to Part D? How could this                   rules pay for prescription drugs                      (PBMs) and benefits consultants help
                                                proposal be implemented to help reduce                  differently when provided during                      buyers (insurers, large employers) seek
                                                out-of-pocket costs for the 27% of                      inpatient care (Part A) or administered               rebates intended to lower net drug
                                                beneficiaries who do not have Medicare                  by an outpatient physician (Part B).                  prices, and help sellers (drug


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                                                22698                        Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

                                                manufacturers) pay rebates to secure                    formulary design, premium rates, or the               cost-shifting. The Department is also
                                                placement on health plan formularies.                   overall structure of the Part D benefit?              interested in learning more about the
                                                Most current PBM contracts may allow                       Incentives to lower or not increase list           effect of excluding payments received
                                                them to retain a percentage of the rebate               prices. Should manufacturers of drugs                 from, and rebates or discounts provided
                                                collected and other administrative or                   who have increased their prices over a                to pharmacy benefit managers (PBMs)
                                                service fees.                                           particular lookback period or have not                from the determination of Average
                                                   Do PBM rebates and fees based on the                 provided a discount be allowed to be                  Manufacturer Price.
                                                percentage of the list price create an                  included in the protected classes?                       What impacts would these changes
                                                incentive to favor higher list prices (and              Should drugs for which a price increase               have on list prices, price increases over
                                                the potential for higher rebates) rather                has not been observed over a particular               time, and public and private payers?
                                                than lower prices? Do higher rebates                    lookback period be treated differently                What data would support or refute the
                                                encourage benefits consultants who                      when determining the exceptions                       premise described above?
                                                represent payers to focus on high                       criteria for protected class drugs? What                 Copay discount cards. Does the use of
                                                rebates instead of low net cost? Do                     should CMS consider doing, under                      manufacturer copay cards help lower
                                                payers manage formularies favoring                      current authorities, to create incentives             consumer cost or actually drive
                                                benefit designs that yield higher rebates               for Part D drug manufacturers                         increases in manufacturer list price?
                                                rather than lower net drug costs? How                   committing to a price over a particular               Does the use of copay cards incent
                                                are beneficiaries negatively impacted by                lookback period? How long should the                  manufacturers and PBMs to work
                                                incentives across the benefits landscape                lookback period be?                                   together in driving up list prices by
                                                (manufacturer, wholesaler, retailer,                       The Healthcare Common Procedure                    limiting the transparency of the true
                                                PBM, consultants and insurers) that                     Coding System (HCPCS) codes for new                   cost of the drug to the beneficiary? What
                                                favor higher list prices? How can these                 Part B drugs are not typically assigned               data would support or refute the
                                                incentives be reset to prioritize lower                 until after they are commercially                     premise described above?
                                                                                                        available. Should they be available                      CMS regulations presently exclude
                                                out of pocket costs for consumers, better
                                                                                                        immediately at launch for new drugs                   manufacturer sponsored drug discount
                                                adherence and improved outcomes for
                                                                                                        from manufacturers committing to a                    card programs from the determination of
                                                patients? What data would support or
                                                                                                        price over a particular lookback period?              average manufacturer price and the
                                                refute the premise described above?
                                                                                                        What should CMS consider doing,                       determination of best price. What effect
                                                   Should PBMs be obligated to act                      under current authorities, to create                  would eliminating this exclusion have
                                                solely in the interest of the entity for                incentives for Part B drugs committing                on drug prices?
                                                whom they are managing                                  to a price over a particular lookback                    Would there be circumstances under
                                                pharmaceutical benefits? Should PBMs                    period? How long should the lookback                  which allowing beneficiaries of Federal
                                                be forbidden from receiving any                         period be?                                            health care programs to utilize copay
                                                payment or remuneration from                               How could these incentives affect the              discount cards would advance public
                                                manufacturers, and should PBM                           behavior of manufacturers and                         health benefits such as medication
                                                contracts be forbidden from including                   purchasers? What are the operational                  adherence, and outweigh the effects on
                                                rebates or fees calculated as a                         concerns to implementing them? Are                    list price and concerns about program
                                                percentage of list prices? What effect                  there other incentives that could be                  integrity? What data would support or
                                                would imposing this fiduciary duty on                   created to reward manufacturers of                    refute this?
                                                PBMs on behalf of the ultimate payer                    drugs that have not taken a price
                                                (i.e., consumers) have on PBMs’ ability                 increase during a particular lookback                 The 340B Drug Discount Program
                                                to negotiate drug prices? How could this                period?                                                 The 340B Drug Pricing Program was
                                                affect manufacturer pricing behavior,                      Inflationary rebate limits. The                    established by Congress in 1992, and
                                                insurance, and benefit design? What                     Department is concerned that limiting                 requires drug manufacturers
                                                unintended consequences for                             manufacturer rebates on brand and                     participating in the Medicaid Drug
                                                beneficiary out-of-pocket spending and                  generic drugs in the Medicaid program                 Rebate Program to provide covered
                                                Federal health program spending could                   to 100% of calculated AMP allows for                  outpatient drugs to eligible health care
                                                result from these changes?                              excessive price increases to be taken                 providers—also known as covered
                                                   Reducing the impact of rebates.                      without manufacturers facing the full                 entities—at reduced prices. Covered
                                                Increasingly higher rebates in Federal                  effect of the price inflationary penalty              entities include certain qualifying
                                                health care programs may be causing                     established by Congress. This policy,                 hospitals and Federal grantees
                                                higher list prices in public programs,                  implemented as part of the ACA, may                   identified in section 340B of the Public
                                                and increasing the prices paid by                       allow for runaway price increases and                 Health Service Act (PHSA). The Health
                                                consumers, employers, and commercial                    cost-shifting. When is this limitation a              Resources and Services Administration
                                                insurers. What should CMS consider                      valid constraint upon the rebates                     (HRSA) administers and oversees the
                                                doing to restrict or reduce the use of                  manufacturers should pay? What                        340B program, and the discounts
                                                rebates? Should Medicare Part D                         impacts would removing the cap on the                 provided may affect the prices paid for
                                                prohibit the use of rebates in contracts                inflationary rebate have on list prices,              drugs used by Medicare beneficiaries,
                                                between Part D plan sponsors and drug                   price increases over time, and public                 people with Medicaid, and those
                                                manufacturers, and require these                        and private payers?                                   covered by commercial insurance.
                                                contracts to be based only on a fixed                      Exclusion of certain payments,                       Program Growth. The 340B program
                                                price for a drug over the contract term?                rebates, or discounts from the                        has grown significantly since 1992—not
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                                                What incentives or regulatory changes                   determination of Average Manufacturer                 only in the number of covered entities
                                                (e.g., removing the discount safe harbor)               Price and Best Price. The Department is               and contract pharmacies, but also in the
                                                could restrict the use of rebates and                   concerned that excluding pharmacy                     amount of money saved by covered
                                                reduce the effect of rebates on list                    benefit manager rebates from the                      entities. HRSA estimates that covered
                                                prices? How would this affect the                       determination of Best Price,                          entities saved approximately $6 billion
                                                behavior of drug manufacturers, PBMs,                   implemented as part of the ACA, may                   on approximately $12 billion in
                                                and insurers? How could it change                       allow for runaway price increases and                 discounted purchases in Calendar Year


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                                                                             Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices                                             22699

                                                (CY) 2015 by participating in the 340B                  discounts in Medicaid and other                       dispensing systems? Should Medicare
                                                program.2 It is estimated that                          programs?                                             require the use of systems that support
                                                discounted drug purchases made by                                                                             providing this information to patients?
                                                                                                        D. Reduce Patient Out-of-Pocket
                                                covered entities under the 340B                                                                               What existing systems, tools, or third-
                                                                                                        Spending
                                                program totaled more than $16 billion                                                                         party applications could support the
                                                in 2016—a more than 30 percent                             Part D end-of-year statement on drug               creation of these tools? Does the
                                                increase in 340B program purchases in                   price changes and rebates collected.                  technology exist for this approach to be
                                                just one year.3 How has the growth of                   Part D plans presently provide their                  quickly and inexpensively
                                                the 340B drug discount program                          members with an explanation of                        implemented? Would this increase costs
                                                affected list prices? Has it caused cross-              benefits, which includes information                  for the Medicare program? Does this
                                                subsidization by increasing list prices                 about the negotiated price for each of                create unreasonable burden for
                                                applicable in the commercial sector?                    their dispensed prescriptions, and what               prescribers or pharmacists?
                                                What impact has this had on insurers                    the plan, member, and others paid.
                                                                                                        What additional information could be                  E. Additional Feedback
                                                and payers, including Part D plans?
                                                Does the Group Purchasing                               added about the rate of change in those                  We are interested in all suggestions to
                                                Organization (GPO) exclusion, the                       prices over the course of the benefit                 improve the affordability and
                                                establishment of the Prime Vendor                       year? Alternatively, could pharmacists                accessibility of prescription drugs,
                                                Program, and the current inventory                      could be empowered to inform                          including reflections and answers to
                                                models for tracking 340B drugs increase                 beneficiaries when prices for their drugs             questions not specifically asked above.
                                                or decrease prices? What are the                        have changed? Would this information                  Whenever possible, respondents are
                                                unintended consequences of this                         be best distributed by pharmacists at the             asked to draw their responses from
                                                program? Would explicit general                         point of sale, by Medicare as an annual               objective, empirical, and actionable
                                                regulatory authority over all elements of               report, or by the health plan on a more               evidence and to cite this evidence
                                                the 340B Program materially affect the                  regular basis, or some combination of                 within their responses.
                                                                                                        these approaches? Could CMS improve                      What other regulations or government
                                                elements of the program affecting drug
                                                                                                        transparency for Medicare beneficiaries               policies may be increasing list prices,
                                                pricing?
                                                                                                        without violating the Part D program’s                net prices, and out-of-pocket drug
                                                   Program Eligibility. Would changing                  confidentiality protections? What                     spending? What other policies or
                                                the definition of ‘‘patient’’ or changing               operational challenges or concerns                    legislative proposals should HHS
                                                the requirements governing covered                      about burden exist with this approach,                consider to lower drug prices while
                                                entities contracting with pharmacies or                 and how could CMS measure                             encouraging innovation? What data or
                                                registering off-site outpatient facilities              compliance with this approach?                        evidence should HHS consider when
                                                (i.e., child sites) help refocus the                       Federal preemption of contracted                   developing proposals to lower drug
                                                program towards its intended purpose?                   pharmacy gag clause laws. Right now,                  prices?
                                                   Duplicate Discounts. The 340B statute                some contracts between health plans                      HHS is actively working to reduce
                                                prohibits duplicate discounts.                          and pharmacies do not allow the                       regulatory burdens. To what extent do
                                                Manufacturers are not required to                       pharmacy to inform a patient that the                 current regulations or government
                                                provide a discounted 340B price and a                   same drug or a competitor could be                    policies related to prescription drug
                                                Medicaid drug rebate for the same drug.                 purchased at a lower price off-                       pricing impose burden on providers,
                                                Are the current mechanisms for                          insurance. What purpose do these                      payers, or others? To what extent do the
                                                identifying and preventing duplicate                    clauses serve other than to require                   planned actions described in this
                                                discounts effective? Are drug companies                 beneficiaries pay higher out-of-pocket                document impose burden, and do these
                                                paying additional rebates over the                      costs? What other communication                       burdens outweigh the benefits?
                                                statutory 340B discounts for drugs that                 barriers are in place between                            This is a request for information only.
                                                have been dispensed to 340B patients                    pharmacists and patients that could be                Respondents are encouraged to provide
                                                covered by commercial insurance? What                   impeding lower drug prices, out-of-                   complete but concise responses to the
                                                is the impact on drug pricing given that                pocket costs, and spending? Should                    questions outlined above. We note that
                                                private insurers oftentimes pay                         pharmacists be required to ask patients               a response to every question is not
                                                commercial rates for drugs purchased at                 in Federal programs if they’d like                    required. This request for information is
                                                340B discounts? Do insurers, pharmacy,                  information about lower-cost                          issued solely for information and
                                                PBM, or manufacturer contracts                          alternatives? What other strategies might             planning purposes; it does not
                                                consider, address, or otherwise include                 be most effective in providing price                  constitute a notice of proposed
                                                language regarding drugs purchased at                   information to consumers at the point of              rulemaking or request for proposals,
                                                340B discounts? What should be                          sale?                                                 applications, proposal abstracts, or
                                                considered to improve the management                       Inform Medicare beneficiaries with                 quotations. This request for information
                                                and the integrity of claims for drugs                   Medicare Part B and Part D about cost-                does not commit the United States
                                                provided to 340B patients in the overall                sharing and lower-cost alternatives.                  Government (‘‘Government’’) to contract
                                                insured market? What additional                         Health plans and pharmacy benefit                     for any supplies or services or make a
                                                oversight or claims standards are                       managers have found new ways to                       grant award. Further, HHS is not
                                                necessary to prevent duplicate                          inform prescribers and pharmacists,                   seeking proposals through this request
                                                                                                        when prescribing or dispensing a new                  for information and will not accept
                                                                                                        prescription, about the formulary                     unsolicited proposals. Respondents are
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                                                  2 340B Drug Pricing Program Ceiling Price and

                                                Manufacturer Civil Monetary Penalties Regulation,       options, expected cost-sharing, and                   advised that the Government will not
                                                82 FR 1210, 1227 (Jan. 5, 2017).                        lower-cost alternatives specific to                   pay for any information or
                                                  3 Aaron Vandervelde and Eleanor Blalock,              individual patients. How could these                  administrative costs incurred in
                                                Measuring the Relative Size of the 340B Program:        tools reduce out-of-pocket spending for               response to this request for information;
                                                2012–2017, BERKELEY RESEARCH GROUP (July
                                                2017), available at https://www.thinkbrg.✖
                                                                                                        people with Medicare? Is this                         all costs associated with responding to
                                                Vandervelde_Measuring340Bsize-July-2017_WEB_            technology present in all or most                     this request for information will be
                                                FINAL.pdf.                                              electronic prescribing or pharmacy                    solely at the interested party’s expense.


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                                                22700                        Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

                                                Not responding to this request for                      authority of the Paperwork Reduction                  DEPARTMENT OF HEALTH AND
                                                information does not preclude                           Act of 1995 (44 U.S.C. 3501 et seq.).                 HUMAN SERVICES
                                                participation in any future rulemaking                    Dated: May 11, 2018.
                                                or procurement, if conducted. It is the                                                                       National Institutes of Health
                                                                                                        Alex M. Azar II,
                                                responsibility of the potential
                                                responders to monitor this request for                  Secretary, Department of Health and Human             Center for Scientific Review; Amended
                                                information announcement for                            Services.                                             Notice of Meeting
                                                additional information pertaining to this               [FR Doc. 2018–10435 Filed 5–14–18; 11:15 am]
                                                                                                                                                                Notice is hereby given of a change in
                                                request. We also note that HHS may not                  BILLING CODE 4150–03–P                                the meeting of the Center for Scientific
                                                respond to questions about the policy                                                                         Review Special Emphasis Panel, May
                                                issues raised in this request for                                                                             22, 2018, 10:00 a.m. to May 22, 2018,
                                                information. HHS may or may not                         DEPARTMENT OF HEALTH AND                              5:00 p.m., National Institutes of Health,
                                                choose to contact individual responders.                HUMAN SERVICES                                        6701 Rockledge Drive, Bethesda, MD
                                                Such communications would only serve                                                                          20892 which was published in the
                                                to further clarify written responses.                   National Institutes of Health                         Federal Register on May 9, 2018, 83 FR
                                                Contractor support personnel may be                                                                           21301.
                                                used to review request for information                  National Heart, Lung, and Blood                         The meeting will be held on June 13,
                                                responses. Responses to this notice are                 Institute; Notice of Closed Meeting                   2018 at 11:00 a.m. The meeting location
                                                not offers and cannot be accepted by the                                                                      remains the same. The meeting is closed
                                                Government to form a binding contract                     Pursuant to section 10(d) of the
                                                                                                                                                              to the public.
                                                or issue a grant. Information obtained as               Federal Advisory Committee Act, as
                                                                                                        amended, notice is hereby given of the                  Dated: May 10, 2018.
                                                a result of this request for information
                                                                                                        following meeting of the NHLBI                        David D. Clary,
                                                may be used by the Government for
                                                                                                        Mentored Transition to Independence                   Program Analyst, Office of Federal Advisory
                                                program planning on a non-attribution                                                                         Committee Policy.
                                                basis. Respondents should not include                   Review Committee.
                                                                                                                                                              [FR Doc. 2018–10470 Filed 5–15–18; 8:45 am]
                                                any information that might be                             The meeting will be closed to the
                                                                                                                                                              BILLING CODE 4140–01–P
                                                considered proprietary or confidential.                 public in accordance with the
                                                This request for information should not                 provisions set forth in sections
                                                be construed as a commitment or                         552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,            DEPARTMENT OF HEALTH AND
                                                authorization to incur cost for which                   as amended. The grant applications and                HUMAN SERVICES
                                                reimbursement would be required or                      the discussions could disclose
                                                sought. All submissions become                          confidential trade secrets or commercial              National Institutes of Health
                                                Government property and will not be                     property such as patentable material,
                                                returned. HHS may publicly post the                     and personal information concerning                   National Institute of Biomedical
                                                comments received, or a summary                         individuals associated with the grant                 Imaging and Bioengineering; Notice of
                                                thereof. While responses to this request                applications, the disclosure of which                 Closed Meeting
                                                for information do not bind HHS to any                  would constitute a clearly unwarranted                  Pursuant to section 10(d) of the
                                                further actions related to the response,                invasion of personal privacy.                         Federal Advisory Committee Act, as
                                                all submissions will be made publicly
                                                                                                          Name of Committee: Heart, Lung, and                 amended, notice is hereby given of the
                                                available on http://www.regulations.gov.
                                                                                                        Blood Initial Review Group; NHLBI                     meeting of the National Institute of
                                                IV. Collection of Information                           Mentored Transition to Independence                   Biomedical Imaging and Bioengineering
                                                Requirements                                            Review Committee.                                     Special Emphasis Panel.
                                                                                                          Date: June 7–8, 2018.                                 The meeting will be closed to the
                                                  This document does not impose                           Time: 8:00 a.m. to 1:00 p.m.                        public in accordance with the
                                                information collection requirements,                      Agenda: To review and evaluate grant                provisions set forth in sections
                                                that is, reporting, recordkeeping or                    applications.                                         552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,
                                                third-party disclosure requirements.                      Place: The William F. Bolger Center, 9600           as amended. The grant applications and
                                                This request for information constitutes                Newbridge Drive, Potomac, MD 20854.                   the discussions could disclose
                                                a general solicitation of comments. In                    Contact Person: Giuseppe Pintucci, Ph.D.,           confidential trade secrets or commercial
                                                accordance with the implementing                        Scientific Review Officer, Office of Scientific       property such as patentable material,
                                                regulations of the Paperwork Reduction                  Review/DERA National Heart, Lung, and                 and personal information concerning
                                                Act (PRA) at 5 CFR 1320.3(h)(4),                        Blood Institute, 6701 Rockledge Drive, Room           individuals associated with the grant
                                                information subject to the PRA does not                 7192, Bethesda, MD 20892, 301–435–0287,               applications, the disclosure of which
                                                generally include ‘‘facts or opinions                   Pintuccig@nhlbi.nih.gov.                              would constitute a clearly unwarranted
                                                submitted in response to general                        (Catalogue of Federal Domestic Assistance             invasion of personal privacy.
                                                solicitations of comments from the                      Program Nos. 93.233, National Center for                Name of Committee: National Institute of
                                                public, published in the Federal                        Sleep Disorders Research; 93.837, Heart and           Biomedical Imaging and Bioengineering
                                                Register or other publications,                         Vascular Diseases Research; 93.838, Lung              Special Emphasis Panel; P41 BTRC
                                                regardless of the form or format thereof,               Diseases Research; 93.839, Blood Diseases             Application Review (2018/10).
                                                provided that no person is required to                  and Resources Research, National Institutes             Date: June 19–21, 2018.
                                                supply specific information pertaining                                                                          Time: 6:00 p.m. to 12:30 p.m.
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        of Health, HHS)
                                                to the commenter, other than that                                                                               Agenda: To review and evaluate grant
                                                                                                          Dated: May 10, 2018.                                applications.
                                                necessary for self-identification, as a
                                                                                                        Michelle D. Trout,                                      Place: Wild Palms Hotel, 910 East Fremont
                                                condition of the agency’s full                                                                                Avenue, Sunnyvale, CA 94087.
                                                consideration of the comment.’’                         Program Analyst, Office of Federal Advisory
                                                                                                        Committee Policy.                                       Contact Person: John P. Holden, Ph.D.,
                                                Consequently, this document need not                                                                          Scientific Review Officer, National Institute
                                                be reviewed by the Office of                            [FR Doc. 2018–10472 Filed 5–15–18; 8:45 am]           of Biomedical Imaging and Bioengineering,
                                                Management and Budget under the                         BILLING CODE 4140–01–P                                National Institutes of Health, 6707



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Document Created: 2018-11-02 09:14:05
Document Modified: 2018-11-02 09:14:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionPolicy Statement; Request for information.
DatesComments must be submitted on or before July 16, 2018.
ContactJohn O'Brien, (202) 690-7886.
FR Citation83 FR 22692 
RIN Number0991-ZA49

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