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
The White House Aug. 13 released an executive order directing the Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness…
Headline
The AHA, joined by several other national groups representing 340B hospitals, Aug. 8 urged the Health Resources and Services Administration to extend the…
Headline
The AHA today filed an amicus brief in the U.S. Court of Appeals for the D.C. Circuit, defending the Department of Health and Human Services’ decision to…
Headline
The Senate Appropriations Committee July 31 advanced the fiscal year 2026 appropriations bill for the Departments of Labor, Health and Human Services,…
Headline
The Department of Health and Human Services today issued a notice announcing a 340B Rebate Model Pilot Program as a voluntary mechanism for qualifying drug…
Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue…