How Biden’s Executive Order Could Impact Healthcare Law in New York
On July 9th President Biden signed an expansive executive order aimed at promoting competition in the American economy, prompting possible changes to healthcare laws in New York. This order established 72 initiatives involving more than a dozen federal agencies to tackle some of the most pressing competition problems in the US economy, with a specific focus on medical and pharmaceutical companies.
The order, in part, encourages leading antitrust agencies to focus enforcement efforts in key markets, including healthcare markets and the tech sector. It also establishes a White House Competition Council to monitor progress on the Order’s initiatives. Large healthcare companies will likely see increased litigation and attempted regulation to promote greater competition.
One main aspect of the Order is the encouragement for the FTC to ban “pay for delay” agreements, where brand-name drug manufacturers pay generic manufacturers to stay out of the market. It also directs the Food and Drug administration to work with states and tribes to safely import prescription drugs from Canada. Further, it requires the Health and Human Services Administration to increase support for generic and biosimilar drugs and requires the administration to issue a comprehensive plan to lower prescription drug prices. This Executive Order could have a marked effect on the profit margins of major pharmaceutical companies. You can read the order in its entirety by clicking here.
It’s not only pharmaceutical providers that could be affected within the healthcare industry. The Executive Order also directs agencies to scrutinize hospital mergers, particularly in rural areas, and standardization of healthcare plan options for consumers. The executive order encourages federal agencies to consider large-scale policy and rule changes. Increased private litigation and investigations of medical science companies is likely to ensure.
Bleakley Platt & Schmidt has extensive experience representing health industry clients in state and federal civil, criminal, and administrative proceedings, as well as arbitration and mediation proceedings. We defend state and federal False Claims Act cases and regularly advise health industry clients on compliance, liability avoidance, and state and federal health regulatory issues. To find out more details about the types of cases we handle, follow this link. Our attorneys represent hospitals, nursing homes, health care practitioners, and many other health industry clients. Call us at 914.949.2700 to schedule a consultation.