Tax News Update    Email this document    Print this document  

July 12, 2021
2021-1336

President Biden signs executive order on promoting competition in American economy, including four areas of health care

The order tackles consolidation and anti-competitive behavior in the prescription drug, hospital, health insurance, and hearing aid markets

On July 9, President Biden signed an Executive Order on Promoting Competition in the American Economy. In his remarks, President Biden said that the order is a "critical step towards an economy that works for everyone" and expressed his belief that "capitalism without competition isn't capitalism — it's exploitation." Among other items, he said that the order "commits the government to full and aggressive enforcement of antitrust laws," noting that it includes 72 initiatives across a dozen federal agencies and represents a "whole-of-government" effort.

The order aims to tackle four areas of health care — prescription drug costs, hospital consolidation, health insurance choice, and hearing aid access. The order states: "Americans are paying too much for prescription drugs and healthcare services — far more than the prices paid in other countries. Hospital consolidation has left many areas, particularly rural communities, with inadequate or more expensive healthcare options. And too often, patent and other laws have been misused to inhibit or delay — for years and even decades — competition from generic drugs and biosimilars, denying Americans access to lower-cost drugs."

Among other items, the order directs federal agencies to increase access to lower-cost drugs through importation and banning of "pay for delay" deals; to increase access to affordable, convenient health care by revising merger guidelines and supporting price transparency efforts; to increase patient choice by standardizing plan options in the National Health Insurance Marketplace; and to reduce the cost of hearing aids by allowing them to be sold over the counter. The administration released a fact sheet in advance of the order outlining a detailed summary of key actions.

Additional information can be found in the attached Tax Alert.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Heather Meade (heather.meade@ey.com)
   • Laura Dillon (laura.dillon@ey.com)

———————————————
ATTACHMENT

Competition executive order

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement