All Carrots, No Sticks: House Republican Drug Shortage Plan Ups Reimbursement But Lacks Supply, Quality Commitments

New Republican House Energy and Commerce shortage plan is seen as reasonable starting point, though in need of much strength to address root causes of supply troubles. Most changes apply to generic drugs, but a few could impact brands.

bundle of carrots
Republican drug shortage plan contains lots of carrots for drug manufacturers • Source: Shutterstock

A House Republican plan to tackle drug shortages focuses on increased reimbursement to shore up the US supply chain, relying on manufacturer’s good will rather than mandates to use those additional resources to prevent and mitigate drug shortages.

Key Takeaways
  • Financial perks in Medicaid, 340b and Medicare for drugs at risk of shortages (mostly generics) would be awarded under a new Republican plan.

  • Experts...

The bill’s failure to extract supply chain commitments from drug companies or other health care entities in exchange for new government funding is unlikely to lead to the enhanced drug...

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