AFFORDABILITY STARTS WITH ACCOUNTABLE HOSPITALS
HRSA'S 340B Pilot is a common sense step toward badly needed transparency.
The Health Resources and Services Administration’s (HRSA) 340B Rebate Model Pilot Program evaluates how the approach could strengthen hospital price transparency and ensure prescription drug discounts go to the providers directly serving patients in need.
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Hospitals still buy medicines the same way they do today.
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The only change: Instead of getting the discount up front, they pay full price and get the discount ten days after they prove the prescription meets basic eligibility standards to qualify for 340B pricing.
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Everyone keeps records and follows deadlines so there’s a clear paper trail showing that the savings are going where they should.
Hospitals are fighting to keep their drug prices hidden. Ask why.
Even before the rebate pilot was set to begin (effective January 1, 2026), the American Hospital Association (AHA) and allied hospital groups have filed suit to block it.
They argue this model departs dramatically from decades of traditional 340B practice and claim it imposes new financial and administrative burdens. Meanwhile, new data shows hospitals account for 87% of the $81 billion in 340B discount drug purchases made in 2024 – underscoring the scale of their revenue at stake.
If hospitals are using the program properly, they should have nothing to hide. Their early resistance signals what to expect once real oversight is in place: more attempts to delay, dilute, or block reforms that hold them accountable.
