60-Day Proposed Delay on Insulin Executive Order

Thoughtware Alert Published: Mar 16, 2021
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On March 11, 2021, the U.S. Department of Health & Human Services issued a second 60-day proposed delay on the executive order (EO) rule regarding access to affordable life-saving medications, first published on September 28, 2020, and made into a final rule on December 23, 2020. This is the second delay under the Biden administration and extends the effective date to July 20, 2021.

This controversial insulin and epinephrine EO targets health centers nationwide. The controversy of this rule stems from statements by federally qualified health centers (FQHC) that FQHCs already work to extend low prices on these products to their patients every day and to comply will cause undue burden. Noted as one of the Federal Register’s reasons for this freeze, this EO would directly limit health centers from collecting 340B savings on insulin and epinephrine products sold to their patients, regardless of insurance coverage, ability to pay, or current savings already passed to patients.

More than 130 comments on the proposal have been submitted. The comment period closed on March 14, 2021. 

BKD recommends that health centers continue to anticipate the potential administrative steps required to comply with this rule by July 20, 2021. If you have questions, please reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.

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