(WASHINGTON, D.C.) — Consumer Healthcare Products Association (CHPA) President & CEO Scott Melville today released the following statement in response to the White House’s executive order, “Lowering Drug Prices by Once Again Putting Americans First,” issued this week.
The order predominately focuses on initiatives directly impacting the prescription drug industry, but does have implications for the over-the-counter (OTC) drug industry, directing the Secretary of Health and Human Services (HHS), through the U.S. Food and Drug (FDA) Commissioner, to issue a report providing administrative and legislative recommendations to: “improve the process through which prescription drugs can be reclassified as OTC medications, including recommendations to optimally identify prescription drugs that can be safely provided to patients over the counter.”
“CHPA commends the White House for recognizing the critical and essential value that non-prescription medicines provide to American consumers and our healthcare system,” said Melville. “The Rx-to-OTC switch process has delivered safe, effective, and affordable options for decades, and rightly so, this order recognizes that empowering consumers with more choices starts with increasing access to safe, effective OTC medicines. This is smart healthcare policy that broadens access and reduces costs. Incremental improvements to the Rx-to-OTC switch process beyond those already envisioned when the Additional Conditions for Non-prescription Use (ACNU) Proposed Rule becomes a Final Rule in the next few weeks and has the chance to accelerate consumer access and make profound public health advancements.”
Background:
OTC medicines save the U.S. healthcare system billions annually:
- The availability of OTC medicines leads to $167 billion in annual savings for the entire U.S. healthcare system by using OTC products instead of more expensive prescription or urgent care options.
- OTC medicines provide two key sources of avoided cost. Approximately $110 billion in clinical cost savings (including avoided doctor visits).
- Approximately $56 billion in drug cost savings (lower-priced OTCs versus higher-priced prescription drugs).
- For every dollar spent on OTC medicines, the U.S. healthcare system saves $7.33.
- A single successful switch can lower out-of-pocket costs by hundreds of dollars per year for families. In fact, the Office of Management and Budget estimates that future Rx-to-OTC switches could save consumers nearly $27 per purchase.
