Florida Gov. Ron DeSantis has signed an executive order urging more "transparency" in prescription-drug costs.

CBS News reported that the executive order will partly require audits of pharmacy benefit managers that provide services in the state's Medicaid managed-care program and the state-employee health insurance program.

DeSantis said during the announcement of the executive order that it is "an incredibly opaque process."

The audits will include a "detailed review of potential inflation of dispensing fees and payments from drug manufacturers, insurers, and pharmacies," according to the executive order. It added that the purpose of the audit is to ensure that all costs are justified.

The executive order also mandates state agencies to put certain stipulations in new, renewed, or extended contracts that involve pharmacy benefit managers.

Pharmacy benefit managers act as sort of middlemen and play roles such as representing insurers in negotiations with drug companies and pharmacies.

Small pharmacies lobbied for the bill, particularly those who have long complained about pharmacy benefit managers.

The Republican governor also signed a bill last month that seeks to increase oversight of pharmacy benefit managers.

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Florida Drug Prices Transparency

Governor Ron DeSantis said that Florida maintains to lead the nation in ensuring accountability in the health care industry and launching reforms to fight prescription costs.

The executive order directs all executive agencies to include provisions in all future contracts with PBMs that include prohibiting spread pricing for all PBMs, prohibiting reimbursement clawbacks for all PBMs, and directing agencies to include data transparency and reporting requirements. It also includes directing all impacted agencies to amend all contracts to the extent feasible with the same provisions, according to a News4Jax report.

DeSantis' office noted on Friday that the state's Canadian Prescription Drug Importation program has been under review by the Food and Drug Administration for around 600 days.

The governor also announced that the Florida Agency for Health Care Administration filed a Freedom of Information Act request to gain insight into the status of the proposal to lower drug costs.

The Florida Governor's Office's statement noted that the FDA must provide transparency in their review process, adding that Florida will hold them accountable to ensure they are not "putting politics over patients."

DeSantis granted AHCA authority to negotiate prices for drugs ineligible for importation, such as insulin and epinephrine.

Florida Gov. Ron DeSantis vs. New York Gov. Gavin Newsom

Meanwhile, DeSantis hits back at California Gov. Gavin Newsom on Friday for running an ad in the Sunshine state in which Newsom said, "Freedom is under attack in your state," as reported by Business Insider. Newsom, in the ad, urged Floridians to relocate to California.

However, DeSantis said that the reverse has happened with the strict COVID-19 lockdown measures California placed. The Republican governor said that California is "driving people away with their terrible governance."

Data showed that California had lost population for two consecutive years while Florida's is rising. DeSantis added that it is almost hard to drive people out of a place like California with its natural advantages.

He made the comment while speaking at a press conference in Cape Coral.

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This article is owned by Latin Post.

Written by: Mary Webber

WATCH: Gov. DeSantis Demands Transparency On Drug Costs - from CBS Miami