340B Rebate Program

The Trump Administration has announced a new pilot program for the 340B drug pricing program that would reduce discounts in favor of rebates. The program will allow drugmakers to test replacing upfront discounts with rebates for some of the prescription drugs they provide through the 340B program. Proponents of the new program believe that this system would improve oversight and reduce duplicate costs.

The program is limited to 10 drugs selected by the Department of Health and Human Services, which is implementing guardrails to ensure the pilot program helps the Health Resources and Services Administration understand the merits and shortcomings of a rebate model for 340B. Critics of the 340B program argue that the program has expanded too far, allowing for abuse of the program and duplicate discounts, rebates would hopefully minimize this abuse. Our Health Equity advocates for reforms in the 340B program, like these rebates, to ensure that all Americans have access to the medicines they need at a reasonable price. Read more here.