Legislation would preserve upfront drug discounts for two years while Congress considers comprehensive 340B reform.
WASHINGTON, D.C., [October 9, 2026] — Advocates for Community Health (ACH) today welcomed the introduction of bipartisan legislation by Representatives Rob Bresnahan (R-PA), Debbie Dingell (D-MI), Tracey Mann (R-KS), and Lois Frankel (D-FL) to delay implementation of the 340B Rebate Model Pilot Program for two years. ACH worked closely with the offices on the legislation, which would preserve upfront discounts that community health centers and other safety-net providers depend on to help patients access affordable medications and essential care.
The bill, 340B Rebate Model Delay Act, would pause implementation of the rebate model, giving Congress time to consider the comprehensive, bipartisan 340B reform bills introduced in the House and the Senate. It is important that Congress has adequate time to fully discuss Congressional intent for the program before the 340B Rebate Model Pilot Program is realized.
Under the rebate model, participating providers, including community health centers, would have to pay full price for certain medications and seek rebates afterward, creating significant financial and administrative challenges for organizations already operating on thin margins. These challenges will severely impact patients as the cost of certain medications will increase sharply and the ability to access certain services will no longer exist as health centers are forced to reduce service lines and points of access.
“Health centers should not have to choose between purchasing medications and keeping essential services available to their communities, all of which comes down to vitally important access to care for patients,” said Amanda Pears Kelly, CEO of Advocates for Community Health. “We thank Representatives Bresnahan, Dingell, Mann, and Frankel for their bipartisan leadership and for recognizing what is at stake for patients. This legislation would preserve upfront discounts while giving Congress time to develop thoughtful, comprehensive reforms that protect the goal of 340B which is to allow safety net providers to stretch scarce federal resources and serve their communities.”
ACH has been a clear and aggressive leader in advocating for Congressional action to address the serious negative implications of the 340B rebate model, and applauds the bill’s sponsors for their strong support of the nation’s safety net providers. This legislation would require manufacturers to provide covered outpatient drugs at the 340B ceiling price through an upfront purchase discount during the two-year period, as it also delays implementation of the 340B Rebate Model Pilot Program.
For community health centers, 340B savings help sustain services such as behavioral health care, dental care, mobile mammography, maternal health services and school-based health clinics. Requiring providers to absorb full drug costs while awaiting rebates would divert scarce resources from patient care and introduce new reporting and technology demands.
ACH is gratified that a large and growing number of 340B covered entity advocates are supporting this legislation, including America’s Essential Hospitals, which represents safety net hospitals; the National Rural Health Association; RWC-340B, which represents Ryan White Clinics; the Children’s Hospital Association; the National Association of Community Health Centers; 340B Health; the American Hospital Association, and others.
The bill builds on ACH’s sustained advocacy to protect 340B. In July, ACH convened a standing-room-only congressional briefing featuring community health center CEOs, who explained how the 340B program supports patient care. Guided by its member-led 340B Subcommittee, ACH also supports the bipartisan SECURE 340B Act in the House and SUSTAIN 340B Act in the Senate, both of which address broader challenges facing the program.
ACH and its allies will urge Congress to include the two-year delay in the year-end legislative package expected to be considered during the December lame-duck session.
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About Advocates for Community Health
Advocates for Community Health is a national, nonpartisan membership organization working to advance forward-thinking federal policies that empower community health centers to provide high-quality, innovative and comprehensive health care to underserved communities. Learn more at advocatesforcommunityhealth.org.