Medical supply chain issues to watch in 2026.
By Wyeth Ruthven, Director of Congressional and Public Relations, Health Industry Distributors Association
Legislative progress tends to slow down in midterm election years, as both parties prepare to make their case to the voters. Nevertheless, the policy signals emerging from such legislative debates matter for healthcare distributors. Federal decisions and unresolved proposals influence long-term planning around sourcing strategies, inventory management, and the ability to deliver critical products to providers and patients.
Trade: Strengthening access through trusted partnerships
Outside of the complex trade landscape, the House and Senate have introduced legislation that would impact global medical supply chains. Trade policy remains a key lever for improving supply-chain resilience, particularly for medical products dependent on global manufacturing networks. The Medical Supply Chain Resiliency Act (S. 998 / H.R. 2213) reflects growing bipartisan interest in improving access through smarter trade relationships. The legislation authorizes the President to negotiate “trusted trade partner” agreements that would offer favorable tariff treatment for medical goods and devices.
As policymakers seek to balance domestic manufacturing goals with global supply realities, distributors will play a central role in operationalizing these policies while maintaining continuity of supply.
Transportation: Building resilience across sectors
Transportation and logistics challenges exposed during recent disruptions continue to shape congressional action. The Promoting Resilient Supply Chains Act of 2025 (S. 257 / H.R. 2444) directs the U.S. Department of Commerce to establish a Supply Chain Resilience Working Group to assess critical supply chains, identify vulnerabilities, and coordinate with international partners.
Distributors should expect increased federal attention on how products move from manufacturing to last-mile delivery.
Preparedness: Building stockpiles and enhancing readiness
Preparedness remains a defining issue for the medical supply chain. A long-standing HIDA priority is reauthorization of the Pandemic and All-Hazards Preparedness and Response Act (PAHPA), which expired in 2023. PAHPA would strengthen the Administration for Strategic Preparedness and Response (ASPR), modernize the Strategic National Stockpile, and support medical countermeasure development and distribution.
For distributors, PAHPA reauthorization affects federal procurement practices, stockpile turnover, readiness expectations, and compliance obligations – each with direct implications for inventory management and contract opportunities.
Medicaid Payments: Coverage Shifts and Rural Impact
Medicaid policy will remain an indirect but powerful driver of supply chain dynamics. The “One Big Beautiful Bill Act,” passed in July 2025, reduces federal Medicaid funding by an estimated $911 billion over ten years, increasing pressure on providers with large Medicaid patient populations. While these changes are phased in, their impact will be felt most acutely by community and rural providers. Initiatives such as the Rural Health Transformation Program aim to help providers adapt, but uneven impacts are likely.
Taken together, these legislative efforts signal a continued focus on resilience, coordination, and preparedness. As 2026 kicks off, HIDA will continue to engage policymakers to advance solutions that protect patient access and recognize the indispensable role distributors play in sustaining healthcare delivery nationwide.