The AHA June 7 submitted comments on a discussion draft of the Drug Shortage Prevention and Mitigation Act, bipartisan legislation proposing to provide Medicare incentive payments to hospitals. This program would support long-term contracting, financing for private sector buffer stock and transparency provisions that would provide hospitals and other providers with increased insight into drug manufacturers’ supply chains and quality management practices. In the letter submitted to leaders of the Senate Finance Committee, the AHA expressed appreciation for several provisions in the bill, including efforts to incentivize greater manufacturing reliability and quality for generic sterile injectable drugs. The AHA also supported the voluntary nature of the program.

The AHA expressed concerns about impacts the bill would have on the 340B drug pricing program, such as the inability for a 340B payment-eligible provider participating in the Medicare Drug Shortage Prevention and Mitigation Program to access 340B pricing for units of a generic drug included in the program. Also, the bill would allow the secretary to reduce or waive the inflationary rebate for applicable drugs in shortage under the Medicaid Drug Rebate Program. AHA noted that this would likely result in increased drug prices and impact the determination of the 340B ceiling price, which would impact all 340B providers.

Related News Articles

Headline
Rep. Doris Matsui, D-Calif., and Sen. Peter Welch, D-Vt., today introduced the 340B Patients Act, AHA-supported legislation that would codify 340B providers'…
Headline
The AHA July 16 filed an amicus brief in the U.S. District Court for the District of Colorado in defense of the state’s 340B contract pharmacy law prohibiting…
Chairperson's File
Public
This month Congress enacted the One Big Beautiful Bill Act — a sweeping package that contained many of President Trump’s legislative priorities on taxes,…
Headline
The U.S. District Court for the Eastern District of Missouri July 11 granted a motion by the state to dismiss claims by AbbVie that the state’s 340B contract…
Headline
The AHA July 2 expressed support for the Resident Physician Shortage Reduction Act (H.R. 3890), bipartisan legislation that would add 14,000 Medicare-funded…
Headline
The House July 3 voted 218-214 to pass the final version of the One Big Beautiful Bill Act (H.R. 1), which enacts many of President Trump’s legislative…