HRSA REOPENS DOOR TO 340B REBATES AFTER COURT-BLOCKED PILOT
WASHINGTON, D.C.— Today, the Health Resources &Services Administration (HRSA) released a request for information seeking stakeholder input on whether to pursue a 340B rebate model and how such an approach might be structured. We appreciate that HRSA is seeking additional information before attempting to reintroduce a rebate plan. That said, the agency is asking covered entities to submit extensive operational, financial, and data-related information, with just a month provided to respond.
The RFI follows HRSA’s decision to pause and withdraw the previously announced rebate pilot program after federal courts blocked its implementation in response to hospital opposition.
While the RFI does not signal a final decision, it makes clear that the agency continues to explore the possibility of reviving a rebate-based approach. The court decisions halting the prior pilot found that HRSA had failed to adequately explain its rationale and had not sufficiently considered the impact a rebate model would have on covered entities. HRSA has stated it intends to take a more methodical and deliberate approach before determining next steps.
The following can be attributed to Maureen Testoni, president and CEO of 340B Health:
“A rebate model would represent a major departure from how the 340B program has operated for more than three decades and would place significant financial and operational strain on safety-net hospitals.
The 340B program’s upfront discount structure provides hospitals with predictability and stability, enabling them to stretch scarce resources to meet community needs. A rebate approach reverses that payment model by requiring hospitals to pay full price upfront and wait for reimbursement. That shift would disrupt cash flow, increase administrative burdens, and introduce uncertainty that many safety-net hospitals cannot absorb.
340B Health intends to submit formal comments to HRSA opposing the use of rebates in the 340B program and outlining the harm such a model would cause for hospitals, patients, and the communities they serve.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285