Official Statement

American Diabetes Association Statement on Delay in Implementation of the “Rebate Rule" in Medicare Part D

February 2, 2021 | Arlington, Virginia

As part of the Biden administration’s plan to review Trump executive actions on health care, the U.S. Department of Health and Human Services (HHS) announced a delay in implementation of the “rebate rule,” moving the effective date from January 1, 2022, to January 1, 2023. 

The Trump administration announced its rebate proposal in 2018. The proposed rule would have effectively banned the rebates drug manufacturers give to pharmacy benefit managers in Medicare Part D—Medicare’s prescription drug program—only allowing rebates at the point of sale in an effort to reduce patients’ out-of-pocket drug costs. The Trump administration decided in July 2019 not to pursue this rebate ban before changing course again and finalizing the rebate rule in November 2020.

The American Diabetes Association® has been a long-time advocate for comprehensive rebate reform efforts—in Medicare, Medicaid and the commercial insurance market—that would reduce the cost of prescription drugs to individuals at the pharmacy counter. It is our hope that the Biden administration and Congress will also support these efforts, and as we continue to monitor HHS timing and rollout of executive actions affecting Americans with diabetes, we look forward to working with the administration and Congress to reduce the cost of insulin and other drugs.


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About the American Diabetes Association
Every day more than 4,000 people are newly diagnosed with diabetes in America. More than 122 million Americans have diabetes or prediabetes and are striving to manage their lives while living with the disease. The American Diabetes Association (ADA) is the nation’s leading voluntary health organization fighting to bend the curve on the diabetes epidemic and help people living with diabetes thrive. For 80 years the ADA has been driving discovery and research to treat, manage and prevent diabetes, while working relentlessly for a cure. We help people with diabetes thrive by fighting for their rights and developing programs, advocacy and education designed to improve their quality of life. Diabetes has brought us together. What we do next will make us Connected for Life. To learn more or to get involved, visit us at or call 1-800-DIABETES (1-800-342-2383). Join the fight with us on Facebook (American Diabetes Association), Twitter (@AmDiabetesAssn) and Instagram (@AmDiabetesAssn).