Executive Order 13937 · Signed Jul 24, 2020

85 FR 45755 · Published Jul 29, 2020 · Effective on signing

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Access to Affordable Life-Saving Medications

prescription drug priceshealth care accesscommunity health centersinsulin affordabilityfederal grants

Signed by President Donald Trump

The order directs the Secretary of Health and Human Services to condition future federal grants to community health centers on those centers passing through their discounted drug prices for insulin and injectable epinephrine to low-income patients who lack adequate insurance coverage.

It targets a gap in the existing 340B drug discount program, where federally funded health centers receive steep discounts on these medications but are not required to pass those savings to uninsured or underinsured patients at the point of sale.

What this order does

What it orders

The order directs the Secretary of Health and Human Services to condition future federal grants to Federally Qualified Health Centers (FQHCs) — community health clinics that receive federal public health funding — on those centers establishing practices to sell insulin and injectable epinephrine at the discounted price the center already pays under the 340B Prescription Drug Program, plus a minimal administration fee. The requirement applies to low-income patients who have high cost-sharing requirements, a high unmet deductible, or no health insurance at all.

The order does not itself change drug prices or the 340B program's rules; it leverages existing grant conditions to compel FQHCs to pass through discounts they already receive but are currently not required to share with patients at the point of sale. Implementation is subject to the availability of appropriations and applicable law, and the order creates no enforceable rights for individuals.

Who it affects

Low-income, uninsured, or underinsured Americans who rely on insulin or injectable epinephrine and purchase those drugs at Federally Qualified Health Centers. FQHCs that accept federal public health grants under Section 330 of the Public Health Service Act are directly subject to the new grant conditions.

Why it matters

Uninsured or underinsured patients with diabetes or severe allergies currently pay list prices — up to $250+ per vial of insulin or $600+ per epinephrine kit — even when their health center paid as little as one cent per unit. This order would make the health center's steep discount available directly to those patients at the pharmacy counter.

What must happen and when

How the order is supposed to work

HHS must restructure the grant conditions attached to future Section 330(e) public health grants so that FQHCs receiving funds are contractually obligated to sell insulin and injectable epinephrine at the 340B acquisition price plus a minimal fee to qualifying low-income patients. Compliance would be tied to grant eligibility — centers that do not adopt the required pricing practice would risk losing future federal grant funding. The Secretary sets the income threshold that determines which patients qualify.

Actions and deadlines

  • Condition future Section 330(e) public health grants on FQHCs passing through 340B discounted prices for insulin and injectable epinephrine to qualifying low-income patientsNo deadline specified

Agencies directed to act

Department of Health and Human Services

Authority and reach

Authorities cited

Article II

Constitutional grant of executive power to the President.

42 U.S.C. 254b(e)

Section 330(e) of the Public Health Service Act authorizing federal grants to Federally Qualified Health Centers.

42 U.S.C. 1396d(l)(2)(B)

Social Security Act provision defining Federally Qualified Health Centers for Medicaid purposes.

Executive Order

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Executive Order 13937: Access to Affordable Life-Saving Medications | EO Reporter