340B Insulin Executive Order Rescinded

Thoughtware Alert Published: Oct 05, 2021
Healthcare

On September 30, 2021, the U.S. Department of Health & Human Services rescinded an insulin pricing rule targeting community health centers (CHC) and the 340B Drug Pricing Program (340B Program), stating that the rule would reduce access and increase administrative costs and burdens to health centers. 

The proposal for withdrawal submitted on May 10, 2021, by the Health Resources & Services Administration came after two proposed delays on the executive order (EO) rule on access to affordable lifesaving medications. It was first published on September 28, 2020, and made into a final rule on December 23, 2020. The second delay under the Biden administration extended the effective date to July 20, 2021.

This controversial insulin and epinephrine EO planned to target health centers nationwide. Insulin cost continues to hold national focus and the controversy of this rule stemmed from statements by federally qualified health centers (FQHC) that FQHCs already work to extend low prices (340B Pricing) on these products to their patients every day and to comply will cause undue burden. 

There was impressive cooperative vocal action from CHCs, organizations, and legislators and this news is a relief to the health center community. If you have questions on this update or other matters, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.

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