The AAMC joined 340B Health, America’s Essential Hospitals, and other hospital groups in a Dec. 11 letter to congressional leadership urging them to call upon the Trump administration to cancel its 340B rebate program (PDF), which is scheduled to go into effect on Jan. 1, 2026. Under this program, the Health Resources and Services Administration (HRSA) will authorize pharmaceutical manufacturers to effectuate 340B pricing as a retrospective rebate, rather than an upfront discount, for a limited set of outpatient drugs [refer to Washington Highlights, Oct. 31]. The AAMC previously submitted comments opposing the use of rebate models in the 340B program, noting the insufficient implementation timeline, the lack of a clear process for disputing improperly rejected rebate claims, and the administrative and financial burden this model would impose on 340B hospitals [refer to Washington Highlights, Sept. 12].
The community letter underscored strong bipartisan opposition in Congress to the use of rebate models in the 340B program, highlighting a recent congressional letter urging Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. to abandon plans for a rebate program, which garnered 166 signatures from bipartisan members of Congress [refer to Washington Highlights, Sept. 12]. The letter further reiterates the hospital community’s concerns with the introduction of a rebate model in the 340B program, including the diversion of financial resources away from patient care; increased administrative complexity and costs for hospitals; and the risk of improper claims denials, coupled with the lack of a clear process for hospitals to challenge such denials.
The AAMC recently joined other hospital groups in an amicus brief in support of the American Hospital Association’s motion for a temporary restraining order to prevent the Jan. 1 implementation of the rebate program [refer to Washington Highlights, Dec. 12].