A recent 340B Report article from Luke Zarzecki highlights the ongoing efforts in Washington, D.C., to preserve the 340B drug pricing program for health centers and other safety-net providers.
While some lawmakers are exploring 340B reforms, including rebate models and the proposed 340B ACCESS Act, the reality is that 340B is a vital lifeline. 340B allows health centers and other covered entities to reinvest drug savings into essential patient services that are typically underfunded or unreimbursed. Crucially, because the 340B program is not taxpayer-funded, it provides significant discounts at no cost to the public. Shifting to a rebate model would jeopardize this balance, potentially forcing health centers and rural hospitals to reduce or shutter critical programs.
Advocates for Community Health (ACH) and other nonprofit care providers, including America’s Essential Hospitals and Children’s Hospital Association, are urging lawmakers to protect the program’s true intent. These concerns were amplified after the U.S. House Energy & Commerce hearing that focused on shifting 340B toward a rebate-based structure.
ACH Vice President Sandy Applebee told 340B Report, “ACH is focused on ensuring that the 340B program continues to serve its core purpose, which is supporting access to care for patients in underserved communities.”
Noting U.S. Rep. Buddy Carter’s 2025 reintroduced ACCESS Act legislation, Applebee said, “We welcome support from Carter on easing pressures on all providers aiming to care for our most vulnerable populations.”