340B HEALTH RESPONDS TO HRSA 340B REBATE PILOT PROGRAM
WASHINGTON, D.C.— Today, the Health Resources & Services Administration (HRSA) announced it is implementing a voluntary, limited pilot program that will allow select drugmakers to replace upfront 340B discounts with backend rebates on the 10 drugs that will be subject to Medicare Part D price caps starting in 2026. In its 340B program notice, HRSA said it intends to test the viability of a rebate model under which covered entities (CEs) would buy drugs at wholesale acquisition cost (WAC), submit rebate claims to drugmakers for drugs they dispense to eligible 340B patients, and receive rebates for the difference between WAC and the 340B price.
The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“We appreciate HRSA’s ongoing commitment to preserving the 340B program and supporting safety-net hospitals. While we recognize the agency’s intent to test a limited rebate model tied to Inflation Reduction Act (IRA) implementation, we remain deeply concerned about the financial and administrative burdens the rebate approach will place on 340B hospitals. HRSA says it could choose to expand the list of drugs after next year following its evaluation of the pilot program.”
“Our recent analysis shows that shifting to rebates for all 340B drugs would force each disproportionate share (DSH) hospital to front an average of more than $72 million to drug manufacturers while waiting for rebates, straining their ability to deliver critical care services. 340B rebate models shift financial burden from highly profitable drug companies to hospitals with the fewest resources serving the most vulnerable patients.”
“We will continue working closely with HRSA to ensure 340B remains strong, sustainable, and focused on protecting the safety net.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285