Advocates for Community Health (ACH) applauds the Health Resources and Services Administration (HRSA)’s strong and clear statement today that a rebate model is not consistent with the 340B Drug Discount Pricing Program, and that they will take enforcement action against companies that pursue one. The rebate model is especially challenging for community health centers, and we are grateful to the Administration for recognizing this and taking this action today.

ACH strongly supports the 340B program because it enables health centers—critical safety net providers that provide care to all who seek it, regardless of ability to pay—to serve more patients with more services and achieve better health outcomes. Health centers face challenges on several fronts: uncertainty in their funding, persistent workforce shortages, and fluctuations in patient coverage. On top of that, the 340B program is failing as a backstop for safety net providers, as it is being eroded by actions by the pharmaceutical industry and pharmacy benefit managers (PBMs).

The 340B rebate model is especially harmful to community health centers because it has the potential to impact patient access, the revenue cycle, and in-house and contract pharmacy arrangements. It would also create a massive administrative burden for a program that was meant to create a flexible funding stream for safety net providers who otherwise couldn’t serve their patients.

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About Advocates for Community Health

Advocates for Community Health (ACH) is a membership organization for federally qualified health centers that strives to advance the delivery of health care to underserved populations and to achieve health equity for patients and communities in need. We are committed to working collaboratively to advance well-defined and forward-thinking policies at the national level. By leveraging the wisdom, agility, and innovation of our members, ACH brings bold leadership to drive the future of the Health Center Program and to transform the American healthcare system. To learn more, please visit advocatesforcommunityhealth.org.