Sponsors (2)
The bill aims to strengthen U.S. drug supply chains and domestic API production through procurement preferences and better transparency, but does so at the risk of higher drug prices for patients, increased federal fiscal costs, and possible short-term medicine shortages if domestic capacity is limited.
Medicare and Medicaid beneficiaries, hospitals, and health systems: the bill would prioritize U.S.-made active pharmaceutical ingredients (APIs) in federal purchasing, reducing reliance on foreign-adversary suppliers and strengthening supply-chain and national security.
U.S. API manufacturers and workers: recommending a price floor and procurement preferences could help sustain domestic API makers, preserve jobs, and incentivize investment in U.S. pharmaceutical production.
Hospitals, state governments, and purchasers: identifying and closing data gaps on API origin and ownership would improve transparency for purchasers and regulators, enabling better procurement decisions and reducing reliance on risky foreign suppliers.
Medicare/Medicaid beneficiaries, patients with chronic conditions, and taxpayers: prioritizing U.S. APIs or imposing price floors could raise drug prices and out-of-pocket costs if domestic production is more expensive.
Patients with chronic conditions and hospitals: favoring domestic suppliers could limit competition and short-term availability of some medicines if sufficient U.S. manufacturing capacity does not exist, increasing risk of shortages or delays.
Taxpayers and the federal budget: procurement preferences or price supports would likely increase federal spending or require higher reimbursements, generating fiscal costs.
Based on analysis of 2 sections of legislative text.
Requires CMS to report within one year with recommendations on using coverage/reimbursement to favor domestic APIs, identify data gaps, and consider price floors to support U.S. manufacturing.
Official title: Require the Administrator of the Centers for Medicare & Medicaid Services to submit a report regarding the use of coverage and reimbursement authorities to protect the markets for active pharmaceutical ingredients and key staring materials.
Introduced August 6, 2026 by Adam Schiff · Last progress August 6, 2026
Requires the Centers for Medicare & Medicaid Services (CMS) to deliver a report to Congress within one year with findings and policy recommendations on using coverage and reimbursement authorities to protect U.S. and allied supplies of active pharmaceutical ingredients (APIs) and key starting materials. The report may recommend tools such as price-floor commitments and prioritizing domestically manufactured APIs when available, and must identify data and ownership gaps needed to implement those recommendations.