AMERICAN DRUGS Act

The AMERICAN DRUGS Act (S 2683) requires federal health programs to prioritize domestically-manufactured generic drugs starting January 1, 2025. It creates a notification system for the FDA to alert Medicare, Veterans Affairs, and Defense when domestically-manufactured generic drugs are in short supply or when fewer than two domestic options exist for a particular drug. The bill prohibits Medicare Part B and Part D from covering foreign-made generic drugs after 2025 unless there's a shortage or the drug is essential for patient health. Medicaid states must exclude coverage for foreign-made generic drugs if a domestically-made version is available, and the Department of Veterans Affairs and Defense must only procure domestically-manufactured generic drugs after 2025, with exceptions for shortages or essential health needs.