The AAMC commented June 4 on Senate Finance Committee Chair Ron Wyden (D-Ore.) and Ranking Member Mike Crapo’s (R-Idaho) discussion draft legislation (PDF) to address drug shortages and ensure patients’ reliable access to lifesaving medications. This bill would implement a Medicare Drug Shortage and Prevention Program, which aims to provide hospitals, group-purchasing organizations, and others with payment incentives to promote purchasing practices that mitigate the risk of shortages.
In its comments, the AAMC shared concerns (PDF) that the proposal “is disproportionately focused on demand-side incentives," noting that “hospitals and other purchasers have limited control over the supply-side factors that ultimately result in drug shortages.” The letter expressed the association’s support for certain provisions of the legislation, including measures to increase supply chain visibility and incentivize hospitals to maintain a buffer stock of essential medicines, while highlighting concerns about the potential burden imposed on hospitals. The AAMC also noted its opposition to a provision that would limit inflationary rebates under the Medicaid Drug Rebate Program, arguing that such a policy would “result in significant drug price increases, which states, the federal government, and health systems and hospitals will ultimately be forced to shoulder.”