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Preferential Treatment for US-Made Drugs in Medicare and Medicaid Programs

This Act establishes a 7-year demonstration program to prioritize drugs manufactured in the United States within federal health programs (Medicare, Medicaid, CHIP). For citizens, this could mean lower out-of-pocket costs for certain medications and increased security regarding the supply of critical drugs. The goal is to strengthen the domestic pharmaceutical supply chain and reduce reliance on foreign sources.
Key points
Lower Drug Costs: Beneficiaries of federal programs may face reduced cost-sharing for medications produced by qualifying US-based companies.
Supply Chain Security: The program promotes domestic manufacturing of critical drugs, aiming to reduce shortages and reliance on vulnerable global supply chains.
Program Tools: US-made drugs can receive preferential placement on drug lists (formularies) or qualify for bonus payments to healthcare providers.
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Additional Information
Print number: 118_HR_9321
Sponsor: Rep. Slotkin, Elissa [D-MI-7]
Process start date: 2024-08-06