HRSA Lowers Out-of-Pocket Medication Costs at Health Centers
Summary
The Health Resources and Services Administration (HRSA) has issued updated award terms requiring HRSA-funded health centers to provide insulin and injectable epinephrine to low-income patients at or below the price paid by the center through the 340B Drug Pricing Program. This action aims to lower out-of-pocket costs for life-saving medications nationwide.
What changed
The Health Resources and Services Administration (HRSA) has announced new requirements for HRSA-funded health centers, mandating that they pass on savings from the 340B Drug Pricing Program to patients for insulin and injectable epinephrine. This action, aligned with an executive order on lowering drug prices, ensures that low-income patients receive these critical medications at or below the price the health center pays.
Health centers are encouraged to implement these updated award terms immediately. This change directly impacts the affordability of essential medications for millions of patients served by these centers, particularly those with incomes below 200% of the Federal Poverty Level. Compliance is expected to maximize patient benefit and ensure continued access to vital treatments.
What to do next
- Review HRSA award terms regarding 340B drug pricing for insulin and injectable epinephrine.
- Implement updated pricing structures to ensure low-income patients receive these medications at or below the health center's acquisition cost.
- Ensure immediate compliance with new award terms to maximize patient benefit.
Source document (simplified)
HRSA Announces Action to Lower Out-of-Pocket Costs for Life-Saving Medications at Health Centers Nationwide
U.S. Department of Health and Human Services
Health Resources and Services Administration For Immediate Release
June 24, 2025
HRSA News Room newsroom.hrsa.gov Contact: HRSA PRESS OFFICE Phone: 301-443-7070 Media Inquiries: Submit via this form New Requirements Ensure Health Centers Provide Insulin and Injectable Epinephrine at Lower Costs to Patients
The Health Resources and Services Administration (HRSA) today announced new steps to lower out-of-pocket costs for life-saving medications. In alignment with President Trump’s Executive Order “ Lowering Drug Prices by Putting Americans First,” HRSA has issued updated award terms requiring HRSA-funded health centers to provide insulin and injectable epinephrine to low-income patients at or below the price paid by the center through the 340B Drug Pricing Program.
“Every American should be able to afford the prescription medications they rely on to live a healthy life,” said HRSA Administrator Tom Engels. “Today’s action ensures that HRSA-funded health centers pass these critical cost savings on to patients, helping millions maintain access to essential treatments. It reflects the Administration’s continued commitment to lower drug prices and Make America Healthy Again.”
This new requirement aims to improve access and affordability for two of the most vital medications in emergency and chronic care: insulin, used by millions of Americans to manage diabetes, and injectable epinephrine, critical for the treatment of severe allergic reactions. The high costs of these medications have posed a growing challenge for underserved populations.
HRSA-funded health centers deliver comprehensive primary care—regardless of an individual’s ability to pay—to over 31 million patients through more than 15,500 service sites nationwide. Notably, more than 90% of health center patients have incomes below 200% of the Federal Poverty Level.
The 340B Drug Pricing Program allows eligible health care organizations to purchase outpatient drugs at significantly reduced prices. The savings generated help expand services, support outreach, and improve health outcomes in underserved communities.
Health centers are encouraged to begin implementing these updated award terms immediately to ensure full compliance and maximize patient benefit.
To locate a nearby health center, visit Find a Health Center.
Date Last Reviewed:
June 2025
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