To require the Secretary of Health and Human Services to establish a demonstration program to test mandatory coverage of treatment for wound care for epidermolysis bullosa under the Medicaid program.

HR7877, titled the "Shane DiGiovanna Act," was introduced in the House of Representatives on March 9, 2026, by Rep. Landsman, Greg [D-OH-1]. The bill was subsequently referred to the House Committee on Energy and Commerce on the same day. The latest action, on March 17, 2026, notes sponsor introductory remarks. The bill establishes a 2-year nationwide demonstration program, beginning not later than 1 year after enactment, to test mandatory Medicaid coverage for specific wound care treatments for epidermolysis bullosa. This program would require States to include over-the-counter antihistamines, acetaminophen, nonsteroidal anti-inflammatory drugs, antiseptics, zinc oxide, antibiotic ointments, and necessary wound care supplies (including dressings, gauze, and bandage retainers) as medical assistance under their Medicaid plans. This bill does not explicitly appropriate funds but mandates coverage under the existing Medicaid program, thereby shifting the cost of these treatments to the federal and state governments through Medicaid. This creates a guaranteed revenue stream for manufacturers and distributors of the specified medical supplies and pharmaceuticals. The mechanism is through expanded coverage, meaning that once enacted, the demand for these products for eligible individuals will be covered by Medicaid, ensuring payment to suppliers and pharmacies. The bill requires the Secretary of Health and Human Services to conduct a study and report to Congress on the program's effect on expenditures and health outcomes, which could inform future permanent policy. Structural winners include pharmaceutical companies producing the specified over-the-counter medications and medical supply companies manufacturing wound care products. Companies like Johnson & Johnson ($JNJ), Pfizer Inc. ($PFE), GSK plc ($GSK), and Merck & Co., Inc. ($MRK) produce various over-the-counter medications and pharmaceuticals that could fall under the specified categories. Medical supply distributors such as McKesson Corporation ($MCK) and Cardinal Health, Inc. ($CAH) would benefit from increased distribution volume. Retail pharmacies like CVS Health Corporation ($CVS) would see increased prescription and over-the-counter sales covered by Medicaid. Amazon.com, Inc. ($AMZN) could also benefit through its pharmacy and healthcare distribution channels. Stryker Corporation ($SYK) and Boston Scientific Corporation ($BSX) are primarily medical device companies, but their broader healthcare portfolios could see indirect benefits if they have relevant wound care products or distribution. Looking at recent market data, over the past 30 days, Pfizer ($PFE) has seen a +4.58% change, GSK ($GSK) +1.99%, and Merck ($MRK) +4.12%. Johnson & Johnson ($JNJ) has also shown a positive 30-day change of +0.56%. In contrast, McKesson ($MCK) and Cardinal Health ($CAH) have experienced 30-day declines of -8.01% and -1.57% respectively, while CVS Health ($CVS) is down -6.88%. Amazon ($AMZN) is down -2.81%. Stryker ($SYK) is down -10.31% and Boston Scientific ($BSX) is down -14.25%. The bill's introduction on March 9, 2026, falls within this 30-day period. The positive movements in pharmaceutical companies like PFE, GSK, and MRK could reflect broader market trends or specific company news, but the bill's potential to create a new revenue stream for these types of products is a positive catalyst. The bill is currently in the early stages of the legislative process, having been introduced and referred to committee. Further legislative steps, including committee consideration, potential floor votes, and Senate action, would be required for enactment.