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Biden Administration Formally Proposes to Rescind FQHC Rule

The Biden administration formally proposed to rescind a Trump-era final rule requiring federally qualified health centers (FQHCs) to charge certain low-income patients no more than the 340B Drug Pricing Program price for insulin and injectable epinephrine. This rule was originally issued to implement a Trump executive order titled “Access to Affordable Life-Saving Medications.

The final rule, which the Biden administration delayed twice since March 22, is being considered for rescission because the Department of Health and Human Services (HHS) has significant concerns involving diverting vital resources to implement the rule, administrative cost and burden, and the potential effect on ongoing primary care services for medically underserved and marginalized populations.

HHS seeks public comment on this notice of proposed rulemaking to rescind the rule. As of now, the Trump-era executive order remains in place.

America’s Essential Hospitals will monitor developments on this topic. Comments on the proposed rule are due July 16.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Abigail Painchaud is a policy associate at America's Essential Hospitals.

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