Florida’s governor wants to lower cost of prescription drugs

Tallahassee – On Friday, Gov. Ron DeSantis issued an executive order designed to increase scrutiny of pharmacy benefit managers.

The executive order, in part, will require audits of pharmacy benefit managers that provide services in the state’s Medicaid managed-care program and the state-employee health insurance program. Pharmacy benefit managers act as sort of middlemen and play roles such as representing insurers in negotiations with drug companies and pharmacies.

“This is an incredibly opaque process,” DeSantis said during an appearance in Cape Coral to announce the executive order. The audits, for example, will include “a detailed review of potential inflation of dispensing fees and payments from drug manufacturers, insurers and pharmacies, as such pertain to a Medicaid managed care plan,” the executive order said.

“The purpose of this audit is to ensure that all costs incurred by the state of Florida are justified.”

According to the executive order, state agencies should put certain stipulations in new, renewed, or extended contracts that involve pharmacy benefit managers.

DeSantis last month signed a bill (HB 357) that also seeks to increase oversight of pharmacy benefit managers.

The bill included giving the Office of Insurance Regulation more authority over pharmacy benefit managers.

The bill has been lobbied by the small pharmacies, which have long complained about pharmacy benefit managers.