340B HEALTH STATEMENT ON HRSA 340B REBATE PROGRAM NOTICE
Washington, D.C.— The Health Resources & Services Administration (HRSA) today released a notice outlining a 340B rebate program for all drugs subject to Medicare maximum fair prices (MFP) in 2026 and 2027, which would apply for all uses and payers of the drugs starting Jan. 1, 2027.
The following is attributable to 340B Health President and CEO Maureen Testoni. 340B Health is the national trade association representing more than 1,600 hospitals participating in the 340B drug pricing program:
“HRSA’s 340B rebate program is effectively a rerun of the flawed approach HRSA tried to take earlier this year. HRSA’s initial attempt was blocked by federal courts that found the program likely violated federal administrative law, and it may be again. However, the fundamental problem is that rebates are bad policy that will harm safety-net hospitals and the patients who depend on them.
“Congress designed 340B to provide upfront discounts that help hospitals stretch scarce resources and invest in care for vulnerable communities. A rebate model turns that approach on its head by forcing hospitals to pay higher prices upfront and then navigate a complex process to seek reimbursement later. That creates unnecessary financial risk, diverts millions in 340B savings away from patient care to implement and maintain the rebate process, and creates uncertainty for providers that already operate on thin margins while caring for disproportionate numbers of low-income patients.
“Rebates will make it harder for hospitals to access the resources Congress intended them to receive and easier for drugmakers to delay, diminish, or deny those resources. At a time when many 340B hospitals are facing growing financial pressures, especially considering predictions that congressional cuts to Medicaid will soon result in millions losing Medicaid and significantly increase the number of uninsured, policymakers should be strengthening 340B hospitals, which are responsible for 77% of Medicaid care, not creating new obstacles.
“340B Health will continue advocating against rebates and for policies that protect hospitals’ ability to use 340B savings to serve patients and communities in need.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285