The HHS Thursday froze the former Trump administration’s December drug policy that requires community health centers to pass on all their insulin and epinephrine discount savings to patients.
Centers that don’t pass on the savings wouldn’t qualify for federal grants. The rule, which was finalized in late December, is delayed until March 22, the Department of Health and Human Services said in a Federal Register post.
This freeze is part of the Biden administration’s large-scale effort announced this week that will scrutinize the Trump administration’s health policies. If the previous administration’s policies raise “fact, law, or policy” concerns, the Biden HHS will delay them and consult with the Office of Management and Budget about other actions.
Former HHS leaders argued the drug rule would benefit patients who struggle to pay for expensive insulin and allergy medication. However, the health centers said they already pass on those savings and this rule is merely an administrative burden that paints them as entities that price-gouge patients. It’s not clear how many facilities would have to follow the rule or face funding restrictions.
To contact the reporter on this story:
To contact the editors responsible for this story:
To read more articles log in.
Learn more about a Bloomberg Law subscription.