In a Sept. 8 letter to the Health Resources & Services Administration (HRSA), America’s Essential Hospitals urged the agency to rescind its pilot 340B Drug Pricing Program rebate model. HRSA on July 31 published a notice authorizing the limited use of rebate models and will allow rebates effective Jan. 1, 2026.
This policy would delay access to statutorily mandated 340B discounts and require covered entities to pay prescription drug manufacturers millions of dollars annually up front with the expectation manufacturers will pay rebates. The association calls on HRSA to rescind the notice authorizing the pilot. If the agency proceeds with the pilot, the association urges HRSA to provide additional protections for essential hospitals.
Specifically, America’s Essential Hospitals urged HRSA to:
- Rescind the pilot program
- Bolster guardrails to protect essential hospitals
- Narrow the program’s scope to align it with the Inflation Reduction Act
- Ensure transparency and opportunities for feedback
- Reduce burdens on covered entities
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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