In a letter sent to Sen. Orrin Hatch (R-Utah) last week, ASHP commended a legislative proposal that promotes notification and provides economic incentives to reduce drug shortages, but noted that one provision could result in the loss of patient access to needed care.

The draft bill would provide three economic incentives for manufacturers of sterile injectable products with four or fewer manufacturers:

• Changing the reimbursement formula for Part B drugs from Average Sales Price (ASP) plus 6 percent reimbursement to Wholesale Acquisition Cost (WAC) for five years,
• Exempting Medicaid rebates for sterile injectable products with four or fewer manufacturers for five years, and
• Providing an exemption from 340B discounts for sterile injectable products with four or fewer manufacturers for a period of five years.

In the letter, ASHP expressed concern with the 340B exemption and the potential impact it may have on safety net hospitals. The Society pointed to a report from the Office of the Assistant Secretary for Planning and Evaluation that does not identify federal health programs as causes of drug shortages. ASHP also noted that it has not identified a correlation between reimbursement rates and drug shortages.

Read ASHP’s letter to Sen. Hatch