CMS Weighs “Secure American Medical Supplies” Designation to Pay Hospitals That Buy USA-Made PPE and Medicines

The Centers for Medicare & Medicaid Services (CMS) on January 26, 2026, asked for public comment on ways Medicare could encourage hospitals to buy USA-made personal protective equipment (PPE) and essential medicines.

What CMS is considering

• A new “Secure American Medical Supplies” designation for hospitals that commit to domestic purchasing. Designated hospitals could be listed on a public website.
• Payment approaches to offset the extra cost. In one example, CMS would estimate how much PPE a hospital uses for Medicare patients and pay the price difference for domestic supplies.
• A possible quality measure requiring hospitals to show minimum domestic procurement percentages for PPE and essential medicines.

The advance notice was published in the Federal Register on January 29, 2026, with a 60-day comment period.

“The COVID-19 public health emergency exposed the dangers of depending on foreign countries for critical PPE and essential medicines, highlighting the need for domestic emergency preparedness.”

Dr. Mehmet Oz, CMS Administrator

Why it matters for Made in USA

Cost is the main barrier. Fierce Healthcare reported that CMS cited federal analyses finding USA-made nitrile gloves cost about 1.5 to 3 times as much as imports, and domestic active pharmaceutical ingredients about 12 times as much. Payments tied to domestic purchasing could give USA makers of PPE and drugs steadier demand and help them expand.

FAQ

What is the Secure American Medical Supplies designation?

A proposed Medicare designation for hospitals that commit to buying USA-made PPE and essential medicines.

Is this a final rule?

No. It is an advance notice of proposed rulemaking that asks for public comment.

How much more do USA-made medical supplies cost?

CMS cited analyses showing domestic nitrile gloves cost about 1.5 to 3 times as much, and domestic drug ingredients about 12 times as much.