Phoenix, Arizona - Governor Doug Ducey issued an executive order today that increases transparency and eliminates undue influence by pharmaceutical and medical device companies regarding health services decisions made by the state’s Pharmacy and Therapeutics Committee.
The executive order follows reports that a member of Arizona’s Pharmacy and Therapeutics Committee, a committee which makes recommendations about drug coverage to the Arizona Health Care Cost Containment System (AHCCCS), received compensation -- as much as $700,000 since 2013 -- from drug companies while serving as a member of the committee. The board member was removed on Thursday. The matter is also being referred to law enforcement for review.
Under the executive order, AHCCCS will require individuals providing testimony at meetings of the Pharmacy and Therapeutics Committee to disclose whether they represent or have received compensation from a pharmaceutical or medical device company. Additionally, members of the committee must abstain from discussing or voting on any agenda item when there is a conflict of interest.
“Decisions about healthcare should be made objectively and in the best interests of Arizonans, without even the appearance of undue influence,” said Governor Ducey. “Today’s executive order will increase transparency by shedding a light on potential conflicts of interest and eliminating improper influence by special interests and drug companies.”
Executive Order 2018-06
Increasing Transparency and Eliminating Undue Influence by Pharmaceutical and Medical Device Companies
WHEREAS, the Arizona Health Care Cost Containment System provides vital health services to low-income Arizonans; and
WHEREAS, the Arizona Health Care Cost Containment System has a duty to taxpayers to ensure that all decisions are made in fiscally sound and transparent manner; and
WHEREAS, decisions about drug coverage should be made based on empirical data and should not be unduly influenced by pharmaceutical and medical device companies, and
WHEREAS, individuals who are making recommendations about drug coverage at the Arizona Health Care Cost Containment system must be free from any conflicts of interest; and
WHEREAS, the public has a right to know any potential conflicts of interest individuals making drug coverage decisions may have;
NOW, THEREFORE, I, Douglas A. Ducey, by virtue of the authority vested in me by the Constitution and laws of the State of Arizona do hereby direct the following:
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The Arizona Health Care Cost Containment System shall annually provide mandatory conflict of interest training to all members of the Pharmacy and Therapeutics Committee.
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The Arizona Health Care Cost Containment System shall publicly post all disclosure forms for all members of the Pharmacy and Therapeutics Committee.
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In accordance with Arizona Revised Statutes Title 38 Chapter 3 Article 8, any member of the Pharmacy and Therapeutics Committee who has a conflict on any agenda item shall abstain from participating in the discussion of and voting on that agenda item.
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The Arizona Health Care Cost Containment System shall adopt a rule requiring any individual providing in-person or written testimony at meetings of the Pharmacy and Therapeutics Committee to disclose whether they represent a pharmaceutical or medical device company and whether they have received any form of payment or compensation from a pharmaceutical or medical device company.
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The Arizona Health Care Cost Containment System shall review publically available data on payments by pharmaceutical and medical device companies to physicians to determine an appropriate threshold above which a person shall be disqualified from serving on the Pharmacy and Therapeutics Committee.
IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Great Seal of the State of Arizona.
GOVERNOR
DONE at the Capitol in Phoenix this twenty-seventh day of July in the Year Two Thousand and Eighteen and of the Independence of the United States of America the Two Hundred and Forty-Third.
ATTEST:
Secretary of State