Drug Shortages Proposal From Sen. Hatch Offers 7-Year Economic Incentives
This article was originally published in The Gold Sheet
The Utah Republican’s draft bill would encourage industry to increase its capacity to manufacture sterile injectable drug products by providing higher reimbursement rates and exclusivity incentives. House Republicans continue to pursue economic options, but time and jurisdictional factors could work against such measures to address shortages.
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House and Senate committee user fee bill mark-ups approaching, but drafts have differences in drug shortage, supply chain security and other proposed policy changes to reconcile.
House hearing includes arguments that regulatory delays thwart the market’s response to shortage price signals, suggesting reforms could be included in user fee legislation along with the popular early warning requirement.
Like the Senate proposal, it could include reimbursement rate adjustments in addition to requiring early notification of shortages by manufacturers, but questions remain about ensuring there are no unintended consequences.