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  • Washington Highlights

    Senate Finance Committee Unveils Drug Shortages Proposal

    Sinead Hunt, Senior Legislative Analyst
    For Media Inquiries

    On May 3, Senate Finance Committee Chair Ron Wyden (D-Ore.) and Ranking Member Mike Crapo (R-Idaho) released bipartisan discussion draft legislation intended to mitigate prescription drug shortages and their negative impacts on patients and providers. The proposal reflects feedback the committee received from stakeholders during their Dec. 5 hearing on the topic [refer to Washington Highlights, Dec. 8, 2023].

    The proposal seeks to address the underlying economic drivers of prescription drug shortages by implementing a new Medicare Drug Shortage Prevention and Mitigation Program, which would financially incentivize hospitals, group-purchasing organizations, and others to prioritize the quality and reliability of supply chains in prescription drug-purchasing decisions. Under this proposed program, purchasers who take steps to reduce the risk of shortages would be eligible to receive targeted incentive payments. In addition, the legislation proposes to limit inflationary rebates under the Medicaid Drug Rebate Program for certain generic drugs that are susceptible to shortages, a policy that the AAMC has previously opposed [refer to Washington Highlights, Aug. 31, 2023].