On July 31, the Health Resources and Services Administration (HRSA) unveiled a new 340B rebate model pilot, triggering immediate reactions across the healthcare sector regarding its potential impact on safety-net providers.
The new model which begins January 1, 2027, would change the long-standing program that offers upfront discounts with a new, post-purchase rebate system. While manufacturers and pharmaceutical industry groups welcomed HRSA’s announcement, covered entities and other safety-net providers have deep concerns given the substantial operational and financial strains the model will introduce.
In a 340B Report article by Shannon Young covering stakeholder perspectives, Amanda Pears Kelly, ACH CEO, highlighted that shifting to a backend rebate model poses a direct threat to community-based care:
“This is not simply an administrative change. It could destabilize safety-net providers, restrict access to affordable medications and force health centers to scale back essential services…Community health centers use 340B savings exactly as Congress intended, reinvesting them directly into care for patients in rural and underserved communities.”
Pears Kelly noted that while community health centers account for just 6% of total 340B spending, they bear significant consequences from cash flow disruptions and administrative burdens under a rebate system.
In response to HRSA’s model announcement, ACH is urging Congress to take action before implementation to delay the model and protect essential health services for the millions of patients who rely on community health centers.