A recent article in the 340B Report by William Newton highlights a major advocacy effort led by Advocates for Community Health (ACH) to protect the 340B Drug Pricing Program. More than 260 healthcare providers and advocacy groups signed a December 5th letter urging Congressional leaders to take legislative action to pause the implementation of the Health Resources and Services Administration’s (HRSA) 340B rebate pilot before its January 1, 2026, launch.
Protecting the Healthcare Safety-Net
The broad coalition, which included major groups like the National Association of Community Health Centers, the American Society of Health-System Pharmacists, and the National Rural Health Association, argues that the new pilot imposes an “enormous financial and administrative burden, especially for the smallest community-based providers.” The signatories, many representing community health centers and community-based federal grantees, warn that this change could severely impact the fragile healthcare safety-net system.
While manufacturers claim the pilot will increase program transparency and compliance, CHCs and providers are concerned about the financial and administrative strain. The groups wrote that the 340B rebate pilot “might be the tipping point” for safety-net providers already facing significant financial challenges.
“340B providers must be guaranteed that their ability to provide care to vulnerable patient populations and communities is not hampered by an ill-considered and potentially devastating change in how 340B has worked in its over 30-year history”.
340B Rebate Pilot and Congressional Appeal
This advocacy effort is part of a series of actions opposing the pilot. The letter was addressed to key leadership, including House Speaker Mike Johnson (R-La.), House Minority Leader Hakeem Jeffries (D-N.Y.), Senate Majority Leader John Thune (R-S.D.), and Senate Minority Leader Chuck Schumer (D-N.Y.). It follows a bipartisan effort in which 163 U.S. House members previously signed a letter urging HRSA to abandon the pilot.
The 340B Drug Pricing Program has been essential for more than three decades, allowing covered entities like health centers to stretch scarce federal resources and provide comprehensive care to patients and communities.