Bill Overview
Title: Protecting our Pharmaceutical Supply Chain from China Act of 2022
Description: o ur Pharmaceutical Supply Chain from China Act of 2022 This bill requires the federal government to maintain a registry of certain foreign-sourced drugs, prohibits federal health care programs from purchasing drugs containing ingredients manufactured in China, requires drugs to be labeled for country of origin, and offers domestic manufacturing facility tax incentives. The Food and Drug Administration shall maintain (1) a list of foreign-sourced drugs and active ingredients that are critical for consumer health and safety, and (2) another list identifying such drugs that are produced exclusively in China or use ingredients produced in China. The bill phases in a restriction on federal health care programs purchasing drugs with active ingredients manufactured in China. By January 1, 2024, such programs may not purchase a drug with any active ingredients from China. The Department of Health and Human Services may issue a waiver for an agency or program that is unable to meet this requirement, but no waiver may apply to drugs purchased in or after 2026. Each drug must have labeling listing the country of origin of each active ingredient, and a drug without this labeling shall be deemed misbranded. The bill allows 100% tax expensing for qualified pharmaceutical and medical device manufacturing property placed in service between 2020 and 2026.
Sponsors: Rep. Gallagher, Mike [R-WI-8]
Target Audience
Population: Individuals dependent on pharmaceuticals with active ingredients from China
Estimated Size: 250000000
- The bill will impact consumers who rely on medications that currently have active ingredients sourced from China.
- The healthcare providers and systems that operate under federal healthcare programs will need to adjust procurement processes to comply with the new regulations by 2024.
- Pharmaceutical companies that source active ingredients from China will be affected as they may need to find alternative suppliers or move manufacturing to other countries.
- Domestic pharmaceutical manufacturers stand to benefit due to the tax incentives for manufacturing in the USA.
- Patients in countries other than the US might experience indirect repercussions if global supply chains are affected or if U.S. manufacturers prioritize domestic markets.
Reasoning
- The bill is likely to implement changes that will mostly affect individuals who rely on prescription drugs through federal programs like Medicare and Medicaid since these programs are mandated to avoid ingredients from China.
- Patients may face temporary disruptions or changes in medications, which could affect their sense of wellbeing while alternatives are sourced.
- Pharmaceutical companies that source from China might initially experience negative impacts, yet domestic companies could benefit significantly from the tax incentives.
- While the primary focus is on securing and diversifying supply chains, the immediate effect on consumers could be mixed until the market stabilizes.
Simulated Interviews
Retired teacher (Ohio)
Age: 71 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- I'm worried that I might not get the same medication, and it'll have side effects.
- If they find alternatives quickly, I might not notice too much of a change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Pharmaceutical executive (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could disrupt our supply lines heavily at first.
- But with the tax incentives, we might open a new facility in the U.S.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Nurse (New York)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- We have to make sure patients get equivalent medicine, which may cause some logistical headaches.
- I hope this leads to more stable supply chains in the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Manufacturing plant manager (Texas)
Age: 59 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- This is a chance for us to expand and create more jobs locally.
- We'd need to navigate the initial phases carefully to avoid overextending.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Graduate student (Illinois)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- I don't think I'd notice much change in my medication.
- My concern is more about potential increases in healthcare costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Pharmacist (Florida)
Age: 63 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- We need to prepare for shifts in drug sourcing which might affect the shelves temporarily.
- The clarity in labeling might help customers make informed choices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Federal government healthcare administrator (Pennsylvania)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- We need swift solutions to ensure programs meet the requirements.
- This could usher in a new era of drug safety and transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Hospital supply chain manager (New Jersey)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- We may experience difficulties from fluctuating drug supplies.
- Once resolved, it could simplify sourcing from reliable partners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Auto factory worker (Michigan)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- My meds come from a private plan, so I may not notice the impact immediately.
- The big concern is how costs will adjust after this policy takes effect.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Non-profit worker (Washington)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- Access to necessary medications may change, affecting marginalized groups.
- Efforts to secure supply lines should ideally include assistance for those affected by any shortages.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $5000000000 (Low: $4500000000, High: $5500000000)
Year 2: $5200000000 (Low: $4700000000, High: $5700000000)
Year 3: $5400000000 (Low: $4900000000, High: $5900000000)
Year 5: $5800000000 (Low: $5300000000, High: $6300000000)
Year 10: $6500000000 (Low: $6000000000, High: $7000000000)
Year 100: $7500000000 (Low: $7000000000, High: $8000000000)
Key Considerations
- Supply chain adaptation will be crucial as manufacturers may need time to source alternatives or relocate production.
- International relations and trade policies could influence the feasibility of enforcing drug provenance rules.
- The balance between public health and economic impacts will be critical as drug availability and cost could fluctuate.