By Ken Perez, vice president of healthcare policy and government affairs, Omnicell, Inc.
On July 9, President Joe Biden issued a wide-ranging executive order (EO), “Executive Order on Promoting Competition in the American Economy,” that is highly critical of big business and advocates policy and regulatory changes to spur competition in seven areas: labor markets, healthcare, transportation, agriculture, internet services, technology, and banking and consumer finance. The EO has been described as the centerpiece of a new Democratic Party emphasis on restraining the nation’s most powerful companies, bolstering and consolidating the federal government’s power.
Of course, as with all presidential EOs, the EO by itself does not impose new requirements on the business community; rather, federal agency-driven policy changes, formal rulemaking or passage of legislation by Congress are required. Moreover, an EO can be easily overturned by a new president, as Biden has done with several Trump-era EOs.
The EO tackles four areas in healthcare where the Biden administration contends that lack of competition increases prices and reduces access to quality care: prescription drug prices, hearing aids, hospitals, and health insurance. In accord with the status of the high cost of prescription drugs as the public’s top healthcare-related concern, three-fourths of the EO’s healthcare verbiage is devoted to this area, with only brief paragraphs addressing the other three. Here are the specific proposals in the EO for the four areas.