Essential Medicines Strategic Stockpile Act of 2023 This bill requires the Department of Health and Human Services (HHS) to create a pilot program to test the effectiveness of acquiring, maintaining, managing, and distributing a stockpile of generic drugs at risk of shortage. To carry out the pilot program, HHS must enter into contracts for a term of up to three years with drug manufacturers, co-op or chain pharmacy warehouses, or other eligible entities to create a six-month stockpile of up to 50 types of such drugs. The bill establishes various program requirements, including annual evaluations by the Government Accountability Office.
The implementation of HB 405 would introduce significant amendments to current public health policy regarding drug supply management. By creating stockpiles of specific generic drugs, the bill directly addresses ongoing and future drug shortages, thus enhancing access for patients in need. The cost associated with this initiative is estimated at around $120 million across fiscal years 2024 to 2026, funded through appropriations allocated specifically for this purpose. Regular evaluations mandated by the Government Accountability Office would also facilitate oversight and ensure effective management of the stockpile program.
House Bill 405, titled the 'Essential Medicines Strategic Stockpile Act of 2023,' aims to establish a pilot program under the Public Health Service Act to ensure a reliable supply of generic drugs that may face shortages. It seeks to create a federal stockpile of these drugs, mandating that the Department of Health and Human Services (HHS) enter contracts with eligible entities, including drug manufacturers and pharmacy warehouses, to acquire and manage the stockpile. The program will focus on ensuring that the stockpile contains at least a six-month supply of up to 50 essential generic drugs for distribution across the United States.
Although the bill has multiple proponents, potential contention may arise regarding the procurement process and regulations around the management of stockpiled drugs. Concerns about the selection criteria for the drugs included in the stockpile, as well as the capacity of eligible entities to fulfill their obligations, are key points that may invoke debate during its consideration. Additionally, there may be discussions about how government contracts will affect market competition, especially pertaining to the entities that are awarded contracts to manage and supply these medications.