- Rule was published in late December
- Move part of large-scale regulatory freeze
The HHS on Friday delayed until July 20 a Trump administration drug rule 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 Department of Health and Human Services under President Joe Biden initially delayed the effective date of the rule (RIN 0906-AB25) until March 22. It was finalized in late December. The HHS said it’s extending the hold for a few more months to give agency officials more opportunity to review the rule and ensure it would not impede the agency’s and health centers’ “immediate priority work” of responding to the pandemic.
The freeze is part of the Biden administration’s large-scale effort to scrutinize the Trump administration’s health policies. If the previous administration’s rules 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.
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