Drug Shortages | FAH Policy Blog Team

FAH Questions the “Unintended Consequences” of Draft Drug Shortage Program

Today, FAH submitted feedback on the Senate Committee on Finance’s discussion draft of the “Medicare Drug Shortage Prevention and Mitigation Program.” The letter included FAH’s appreciation that Group Purchasing Organizations and wholesalers were included as program participants and supported the terms of Manufacturer Reliability Agreements to enhance supply chain transparency and reliability. 

However, FAH made it clear that incentivizing providers to maintain a six-month supply of generic drugs may lead to unintended consequences, including resource diversion, logistical difficulties, and disparities between large and small health care providers. FAH urged the committee to reconsider these incentives and explore alternative strategies that balance the need for buffer inventories with broader health care objectives. 

Read the letter here.