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Arizona Governor Doug Ducey made changes to the state’s Medicaid program by adding new transparency rules. He also removed a doctor serving on the state’s Pharmacy and Therapeutics Committee, which makes recommendations about drug coverage to the Arizona Health Care Cost Containment System (AHCCCS)—the state’s Medicaid program. The governor took actions after an investigative report indicated that drug companies have inappropriate influence on the Pharmacy and Therapeutics Committee through Dr. Mohamed Ramadan. According to the report, since 2013, Ramadan received as much as $700,000 in perks and compensation from pharmaceutical companies while serving on the Pharmacy and Therapeutics Committee. In response to the report, Ducey asked law enforcement officials on Thursday to investigate Ramadan. His spokesman, Daniel Scarpinato told NPR, “The governor was very alarmed when he saw this report.” He added that Ducey felt that a swift action is necessary to address the issue.

Eliminating potential conflicts of interest on Arizona’s Medicaid program

On Friday, Ducey signed an executive order that “increases transparency and eliminates undue influence by drug and medical device companies on the state’s Medicaid program.” In a statement, the governor emphasized that decisions on healthcare must be objective and in the best interest of Arizonans. He added that the executive order will eliminate potential conflict of interests and improper influence by pharmaceutical companies and special interests. Under the executive order, Ducey required the AHCCCS to provide annual mandatory conflict of interest training to all members of the Pharmacy and Therapeutics Committee. In addition, he ordered that any member of the Pharmacy and Therapeutics Committee must abstain from discussing or voting on any agenda item when there is a conflict of interest. Furthermore, all individuals providing testimony at any meetings of the Pharmacy and Therapeutics must disclose if they represent a pharmaceutical or medical device company, and if they received any form of payment or compensation.