Biden Invokes Defense Production Act To Target Medical Supply Shortages
The Cold War-era measure allows the president to direct private companies to invest in the manufacturing of medicines or medical supplies characterized as essential to national defense.
President Joe Biden on Monday invoked a Cold War-era measure to boost investment in U.S. manufacturing of medicines and medical supplies that he has deemed important for national defense. Biden used the first meeting of his supply chain resilience council to boast about his administration efforts to improve supply chains upended by the COVID pandemic and help bring inflation under control, but acknowledged more work needs to be done. 鈥淲e know that prices are still too high for too many things, that times are still too tough for too many families,鈥 Biden said. 鈥淏ut we鈥檝e made progress." (Holland and Lange, 11/27)
The Korean War-era law, invoked by Biden and former President Trump during the pandemic, allows the president to direct private companies to produce materials and goods needed for national defense.
Biden will give the Health and Human Services Department authority to invest in medical products unrelated to the pandemic, including insulin, morphine, vaccines and ventilators, a White House official told Axios. (Goldman, 11/28)
"I'm proud to announce that I'll be invoking what's known as the Defense Production Act to boost production of essential medicines in America by American workers," Biden said. "You notice that people have to get certain kinds of shots overseas" because they're not available in the U.S. "Well, that supply chain is going to start here in America. "President Biden also will issue a Presidential Determination giving HHS the authority to invest in domestic manufacturing of essential medicines and medical countermeasures. "HHS has identified $35 million for investments in domestic production of key starting materials for sterile injectable medicines," according to a White House fact sheet. ( Frieden, 11/27)
In related news about drug costs and PBMs 鈥
In response to strained budgets, a growing number of state and local governments across the U.S. are suing insulin makers and pharmacy benefit managers over claims the companies conspired to illegally drive up prices. In recent weeks, state officials in Utah and Arizona, and municipalities in New York, Virginia, Maryland, and Ohio have filed lawsuits alleging that the companies artificially drove up the cost of insulin, making the medication unaffordable for countless residents who have diabetes and causing the governments to overpay for the medication. (Silverman and Wilkerson, 11/28)