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HDA Statement on Drug Affordability Policies

November 23, 2020

ARLINGTON, Va. — HDA President and CEO Chester “Chip” Davis, Jr., released the following statement on the announcement by the Department of Health and Human Services (HHS) of an interim final rule to implement a “Most Favored Nation Model” for Medicare Part B and a final rule eliminating the prescription drug rebate system for Medicare Part D.

“HDA and our distributor members are committed to containing healthcare costs while ensuring Medicare beneficiaries have access to safe and affordable medicines. As a critical connection point between manufacturers and providers, distributors already apply their logistics expertise to save the U.S. healthcare ecosystem between $33–$53 billion in savings annually — and play a key role in generating cost savings to patients. While we are still reviewing these rules, HDA believes any policies being considered should not come at the expense of patient access to critical medications and quality of care.

“As we stated previously in comments to the Centers for Medicare & Medicaid Services, HDA has concerns about the mandatory nature of a model payment plan. Any model payment plan or demonstration should be voluntary and done on a small scale to ensure that it is scalable and does not disrupt access to care.

“HDA and our members look forward to engaging with and serving as a resource to the federal government — as well as our supply chain trading partners — as we collectively work to deliver safe, affordable and accessible healthcare to all Americans.”


The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors — the vital link between the nation’s pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA’s nonprofit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.


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