340B Drug Pricing Program

HHS Sets 340B Rebate Model

The Department of Health and Human Services’ Health Resources and Services Administration has approved eight plans from pharmaceutical companies to participate in its 340B Rebate Model Pilot Program. Currently, eligible 340B providers receive discounts when they purchase covered drugs but under the rebate model, covered entities continue to make purchases through their 340B wholesaler and will seek rebates from the pharmaceutical companies for the ten affected drugs dispensed to 340B-eligible patients after a purchase is made. Providers argue that the new approach creates a new, significant administrative burden for them and could affect their cash flow while pharmaceutical companies maintain [...]

2025-11-05T12:45:32-05:00November 6, 2025|340b|

Senate Committee Looks at 340B

Last week the Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing on the 340B Drug Pricing Program, which provides discounted prescription drugs to eligible health care providers, known as "covered entities," to help them serve low-income and uninsured patients. In recent years the 340B program has become more controversial as it has grown and as pharmaceutical companies object more strenuously to the discounts they are required to provide to participating providers.  In addition, some critics charge that the savings providers gain from 340B discounts are not consistently reinvested in care for low-income and uninsured patients while those [...]

2025-10-28T15:50:27-04:00October 29, 2025|340b, Congress|

Senate Committee Looks at 340B

Last week the Senate Committee on Health, Education, Labor and Pensions held a hearing on the 340B Drug Pricing Program to discuss its growth and impact on patients. Among other subjects, the committee reviewed the importance of the 340B program; the pharmaceutical manufacturers’ rebate program that begins in January; potential transparency reforms; ensuring that 340B entities do not receive duplicate drug discounts; revising the definition of a patient for a covered entity; and reforms involving the use of contract pharmacies. Representatives from the Government Accountability Office, Congressional Budget Office (CBO), UCLA served on the hearing’s witness panel. Go here to find [...]

2025-10-23T14:02:22-04:00October 27, 2025|340b|

Federal Health Policy Update for October 23

The following is the latest health policy news from the federal government for October 17 - 23.  Some of the language used below is taken directly from government documents. Please note that most HHS and other health care-related agencies have indicated that they will not be announcing new policies, publishing proposed regulations, or updating their web sites during the current federal government shutdown. Congress and the Shutdown The Senate postponed its 13th vote on the House-passed continuing resolution (CR), scheduled for today; without bipartisan negotiations on Affordable Care Act enhanced premium subsidies, the measure – whenever the next vote is [...]

Committee Chair Calls for 340B Changes

In a newly released report, Senate Health, Education, Labor and Pensions (HELP) Committee chair Bill Cassidy (R-LA) has pointed to problems with the 340B Drug Pricing Program and suggested ways of dealing with those problems. The report, from the committee’s majority staff, notes that … there are concerns about whether the 340B Program truly benefits low-income and uninsured patients, with some studies suggesting that the 340B benefit does not translate into increased care or lower costs for vulnerable populations.  It also outlines potential changes for improving the program, including requiring additional reporting on the use of 340B savings, scrutiny of [...]

2025-04-29T16:30:28-04:00April 30, 2025|340b, Congress, Medicaid|

Federal Health Policy Update for April 24

The following is the latest health policy news from the federal government for April 18-24.  Some of the language used below is taken directly from government documents. Congress The House and Senate are in recess until April 28.  Upon their return to Washington D.C., committees will begin marking up reconciliation legislation for submission to their respective chambers’ budget committees by May 9.  The Energy and Commerce Committee is expected to mark up its bill, with $880 billion in cuts, the week of May 5.  The committee is expected to seek nearly $550 billion in cuts to Medicaid spending, with the [...]

House Committee to Hold 340B Hearing

The House Energy and Commerce Committee’s oversight subcommittee will hold a hearing on Wednesday about the 340B Drug Pricing Program. At the hearing, titled “Examining How Covered Entities Utilize the 340B Drug Pricing Program,” the subcommittee hopes …to hear directly from entities participating in the program to get a better understanding of how the program is used, including how much money is saved, the types of drugs purchased and prescribed within the program, how entities track their savings, and how those savings are used to improve patient care. Learn more about the hearing and the witness list from the subcommittee’s [...]

2017-10-10T06:00:39-04:00October 10, 2017|Medicare|
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