H.R. 5120: Hospitals As Naloxone Distribution Sites Act

The "Hospitals As Naloxone Distribution Sites Act," also known as the HANDS Act, is designed to enhance the distribution of opioid overdose reversal drugs, specifically naloxone, in various healthcare settings, particularly hospitals. Below are the key components of what the bill would do:

1. Coverage Under Medicare

The bill proposes to amend the Social Security Act to provide:

• No-cost coverage: Medicare will cover preventive opioid overdose reversal drugs at no cost to patients starting January 1, 2026. This means that patients will not have to pay out of pocket for these medications.
• Who can provide the drug: The bill specifies that physicians, nurse practitioners, physician assistants, or other designated clinical staff can furnish naloxone to patients who are identified as at risk for an opioid overdose at the time of their discharge from the hospital or while in the emergency department.

2. Coverage Under Medicaid

For Medicaid, the bill mandates:

• Mandatory coverage: States must include preventive opioid overdose reversal drugs in their Medicaid programs starting January 1, 2026, without imposing deductibles or cost-sharing on beneficiaries.
• Inclusion in medical assistance: The drug will be classified as a prescribed medicine within Medicaid, ensuring that it is covered fully as part of medical assistance.

3. Coverage Under TRICARE

The legislation extends similar provisions to TRICARE, the military health program:

• No cost-sharing: Eligible beneficiaries will also not face any cost-sharing amounts for receiving a preventive opioid overdose reversal drug beginning January 1, 2026.

4. Regulatory Guidance

The bill requires regulatory guidance to be issued to:

• State boards: Guidance will be provided for the safe distribution and dispensing of overdose reversal drugs in hospitals.
• Hospitals: Instructions will be issued for billing processes related to naloxone drugs.

5. Rule of Construction

The bill states that it does not require any healthcare provider to furnish naloxone to a patient unless they determine that the patient is at risk for an overdose.

6. Implementation Timeline

Most provisions of this bill will take effect on January 1, 2026, allowing time for necessary regulatory and operational changes in the healthcare system.

Relevant Companies

• NOVN (Novan, Inc.): As a pharmaceutical company, it may provide naloxone and could see impact from an increase in demand driven by the provisions of this bill.
• ADMP (Adamis Pharmaceuticals): A company that develops opioid overdose reversal drugs may experience changes in business volume related to this legislation.