CAHC Applauds FDA Guidance to Advance Value-Based Care

WASHINGTON, DC (June 12, 2018): The Council for Affordable Health Coverage (CAHC)  – a coalition of employers, insurers, life science companies, PBMs, brokers, agents, patient groups, and physician organizations – responded today to newly released U.S. Food & Drug Administration (FDA) guidance intended to advance value-based purchasing arrangements (VBAs).

The two sets of guidance (12) pave the way for more open communication between manufacturers, payors, and others while providing clarity that may help in the drafting of contracts that include value-based arrangements. This includes allowing for pre-FDA approval communications between drug manufacturers and health plans, (beginning on page 18) much like lawmakers have sought to do legislatively through the CAHC-endorsed Pharmaceutical Information Exchange Act

The FDA guidance ultimately supports the goals of CAHC's Prescriptions for Affordabilityblueprint, a consensus-based approach to improving prescription drug affordability that is estimated to save up to $71 billion a year in healthcare costs once fully implemented. 

CAHC President Joel White released the following statement:

"Today, the FDA helped take a smart step forward in the march toward value-based care by paving the way for more open, clear lines of communication between manufacturers and payors,"said CAHC President Joel White. "These new rules of the road could enable quicker coverage determinations, speed access to breakthrough treatments for patients most in need, and aid in the development of value-based purchasing agreements that drive down costs for consumers. We commend FDA for listening to stakeholders throughout the drafting of this guidance and call upon Congress to codify the agency's recommendations through enactment of the PIE Act and additional measures, as outlined in our Prescriptions for Affordability blueprint - a plan supported by a diverse cross-section of manufacturers, health plans, PBMs, patient advocates, employer groups, and others." 

The Council for Affordable Health Coverage (CAHC) is a broad-based alliance with a primary focus: bringing down the cost of health care for all Americans. CAHC promotes policies that lower health costs through increased competition, informed consumers and more choices to help promote access to affordable coverage. Learn more at