Department of Health & Human Services Freezes Rule Related to Insulin

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As you may have heardĀ fromĀ reportsĀ in the mediaĀ the Biden AdministrationĀ frozeĀ a recent regulation on insulin.Ā Want to know what the headlinesĀ mean?Ā Read on toĀ get all the details.Ā 

On January 21, the Biden Administration placed a freeze on all newly published regulations set forth by the previous Administration that had not yet been implemented. This includes a regulation thatĀ willĀ requireĀ community health centers (CHCs)Ā toĀ passĀ certainĀ discountsĀ for insulin directly to people with diabetes.Ā ButĀ this had not gone into effect yet, soĀ the freeze hasĀ no immediateĀ impact onĀ the cost of insulin.Ā Ā Ā 

ThisĀ insulin-specific ruleĀ wasnā€™t the only oneĀ affected, ratherĀ the freezeĀ applied to all rules established late in the previous Administration that had not yet taken effect.Ā This practice is common betweenĀ administrations, and especially if the new President is from a different party than their predecessor.Ā ThisĀ freeze, orĀ review period,Ā will last 60 days andĀ allows the new Administration the opportunity to fully evaluateĀ theseĀ rules before decidingĀ whetherĀ to makeĀ changes, roll out as-is, or nullify.Ā Ā 

So,Ā whatĀ wouldĀ this proposedĀ ruleĀ do?Ā ItĀ would requireĀ CHCs toĀ pass the discounts they receive onĀ insulinĀ through toĀ their patients whose income is at or belowĀ 350% of the Federal Poverty Level (FLP).Ā CHCs already offer discounted drug pricing,Ā and the proposed rule would expand the people eligible for the discounted pricing toĀ those with a household income between 200% – 350%. For reference, for a family of four 200% – 350% FPL equates to $52,400 – $91,700 respectively.Ā Said another way,Ā this ruleĀ does not apply broadly to all those using insulin, butĀ is limited to those who receive their care at a CHC andĀ have incomeĀ at/below 350% of theĀ FederalĀ PovertyĀ Level (FPL).Ā Ā 

It is worth notingĀ ā€“ prior to the last Administration publishing this ruleĀ ā€“ several key CHC stakeholders raised objections to the complexity of the rule compared to its limited impact, highlighting that most CHC patients already receive discounted drug prices.Ā In other words, evenĀ without this rule in effect, today,Ā people with diabetes can access low-cost insulin at CHCs.Ā Ā 

JDRF includes information on this low-cost option and otherĀ means for securing affordable insulin in our T1D Health Insurance Guide.Ā 

As an organization founded by family members of those withĀ T1D, insulin accessĀ isĀ a top priority.Ā WeĀ are committedĀ to pursuingĀ and supportingĀ comprehensive and systemic reforms that reduce out-of-pocket costs of insulin forĀ everyoneĀ with T1D.Ā As JDRF engagesĀ the new Administration and the new Congress, we will continueĀ toĀ advocateĀ for legislation and policies that makeĀ insulin moreĀ affordable.Ā Ā 

Weā€™llĀ beĀ monitoringĀ the status of the delay to this proposed ruleĀ andĀ update this blog with anything new.Ā Ā 

Update*Ā 

OnĀ OctoberĀ 1, theĀ Biden AdministrationĀ formally rescinded theĀ rule adopted by the Trump Administration requiring community health centers (CHCs) to pass through insulin savingsĀ directly to their patients.Ā Ā 

When HHSĀ asked for additional feedback on the rule in March, JDRF submitted comments requesting the Biden AdministrationĀ find a solution to the administrative challengesĀ raised by stakeholdersĀ and implement the ruleĀ in order toĀ ensure access to life-saving insulin.Ā We believe itĀ isĀ vital that policies that can remove barriers to insulin affordability, even if narrowĀ in their impact, be pursued given the life-saving nature of insulin.Ā Ā 

We are disappointedĀ by the Administrationā€™s decision toĀ repeal this rule.Ā We are committed to pursuing and supporting comprehensive and systemic reforms that reduce out-of-pocket costs of insulin for everyone with T1D.Ā JDRFĀ continuesĀ toĀ work with the Administration and Congress to ensure that no one should suffer or die because they cannot afford insulin.Ā