New Bill Hopes to Curb Drug Shortages, Price Gouging
Posted 23 May 2012 | By
A new bill proposed by Rep. Elijiah Cummings aims to curb drug shortages resulting from so-called "gray market" drug sales where companies purchase stock of medicines experiencing shortages and exorbitantly mark up prices to subsequent purchasers.
"Nobody should be allowed to engage in profiteering at the expense of children and adults with cancer or other critical illnesses by jacking up the price of drugs that are in critically short supply," said Cummings.
Cummings, a Ranking member of the House Committee on Oversight and Government Reform, introduced The Gray market Drug Reform and Transparency Act of 2012, which he said "closes down loopholes in the supply chain and ensures that consumers have more information about who is handling their drugs."
The bill would, among other things:
- Prohibit wholesale distributors from purchasing prescription drugs from pharmacies.
- Establish a "National Wholesaler Database," which would track information about wholesalers' licenses, personal information, contact information and areas of operation.
- Establish fees for wholesale distributors.
- Require companies selling drugs experiencing a shortage to provide purchasing organizations with the original purchase price of the drugs.
- Encourage state regulators to share wholesaler information, including records of disciplinary action, with the proposed National Wholesaler Database.
House of Representatives - CUMMINGS INTRODUCES BILL TO REFORM "GRAY MARKET" DRUG SALES
The Gray market Drug Reform and Transparency Act of 2012