Hospitals sue again over 340B rebates. Plan as if the pilot starts Jan. 1
The AHA is suing to block HHS's expanded 340B rebate pilot. With a Jan. 1 start date, finance and pharmacy teams should prepare for rebates either way.
Hospitals have asked a federal court to stop HHS's expanded 340B rebate pilot, but with a Jan. 1 start date, finance and pharmacy teams cannot wait for a ruling.
On Oct. 9, the American Hospital Association, the Maine Hospital Association and four safety-net hospitals filed suit in the U.S. District Court for the District of Maine to block the Health Resources and Services Administration's revised 340B Rebate Model Pilot Program. It is the hospital field's second challenge to the concept. A narrower 2025 version was halted after that court and the 1st Circuit faulted HHS for not adequately accounting for hospital costs, and HHS later withdrew it.
The new version is broader. On Oct. 1, HRSA published approved plans from 10 drugmakers, including Pfizer, AbbVie, Merck and AstraZeneca, covering high-use drugs drawn from the Medicare price negotiation list. Most are retail Part D products; Part B infused drugs are not included. The pilot is scheduled to begin Jan. 1, 2027.