HDA and its primary pharmaceutical distributor members — a critical link between nearly 1,500 manufacturers and more than 180,000 healthcare providers — are continuing to rise to the challenge of the COVID-19 pandemic.

HDA and the healthcare distribution industry have led on federal traceability issues for nearly two decades. This work culminated in the passage of the Drug Supply Chain Security Act (DSCSA) in 2013. The DSCSA will fundamentally change the way pharmaceutical products and their associated data move in tandem through the supply chain, while increasing safety and security for patients.

HDA opposes permitting the importation into the U.S. of pharmaceuticals sold or designated for sale in foreign countries. HDA firmly believes that allowing importation increases the likelihood of counterfeit or adulterated drugs entering the United States and will not ensure meaningful reductions in the cost of prescription drugs.

HDA and our primary pharmaceutical distributor members are committed to bringing industry and government together to tackle our nation’s complex prescription drug abuse and diversion epidemic, a serious healthcare challenge that threatens both patient safety and the security of the healthcare supply chain.

HDA opposes repeal of the Last in, First Out (LIFO) accounting method and establishment of gross receipts taxes. Healthcare distribution represents a high-volume, low-profit margin business that is impacted disproportionately under certain tax proposals, including repeal of LIFO and instituting gross receipts taxes.

With HDA distributors providing between $33–$53 billion in cost savings to the U.S. healthcare economy each year, our industry is committed to improving access to lower-cost, high-quality medicines for patients.

A Pharmacy Services Administrative Organization (PSAO) interacts with healthcare insurers and pharmacy benefit managers (PBMs) on behalf of independent community pharmacies. Because community pharmacies comprise an approximately 35 percent share of the overall retail pharmacy market in the U.S., the PSAO serves a critical function to help sustain these businesses.

The introduction of counterfeit or adulterated medicines into the supply chain is a serious issue that could adversely affect the safety of prescription medicines and the health of patients. To that end, HDA strongly supports tough, rigorous and consistent standards for state licensing of pharmaceutical distributors as required under federal law.

Drug shortages have challenged regulatory and supply chain stakeholders alike in recent years. While there are many factors that may result in a product being in short supply, HDA pharmaceutical distributor members play a central role in exchanging and coordinating information when a shortage occurs.

Pharmaceutical distributors have emergency preparedness plans in place to ensure continued operations in emergencies, and they actively collaborate with their supply chain partners to solve challenges created by a pandemic or severe emergency scenario.

Successful advocacy at the federal and state levels can help shape policy outcomes while supporting the development of relationships with key legislative audiences. HDA-member business leaders, as healthcare distribution industry experts, have a powerful, unique voice and perspective that can help educate lawmakers and inform public policy.