A major milestone for patient transparency and integrity in hospital care has been reached, as the Department of Health and Human Services (HHS) launched a new 340B Drug Rebate Pilot Program.
Just recently, the Office of Pharmacy Affairs (OPA) announced the voluntary 340B rebate model. The program applies to a select group of eligible medicines and participating manufacturers, and aims to inform and guide the development of future 340B-aligned models through enhanced reporting and transparency.
The lack of transparency and accountability measures in the current discount model has enabled hospitals to pocket the discounts, intended for patients, and divert the savings to fund unrelated projects, such as infrastructure improvements. This practice undermines the very intent of the program—reducing costs for patients. In rural areas, where access to care is already limited, denying affordable treatment is especially harmful. Instead of serving patients, the program is being exploited for institutional gain and manipulated by opaque middlemen.
The 340B program is putting patients in difficult positions, particularly those who are low-income or uninsured. What was originally designed to provide cost savings is now being misused, leaving patients behind. So much that 83 percent of people support reforming the program to ensure those savings reach the patients who need them most. The demand for long-overdue changes is clear. Additionally, 77 percent agree that hospitals should be required to pass along 100 percent of the savings to patients to help lower the cost of medications. Vulnerable patients living in rural and low-income populations need this new rebate model. The public wants accountability and reform that restores the program’s original purpose.
This new pilot program should do just that by introducing a rebate model designed to ensure lower-cost medications go directly to patients. Under this approach, qualifying pharmaceutical companies can offer rebates to hospitals, but only if they verify that the discounted medications are actually reaching patients. This added layer of oversight introduces much-needed accountability for institutions that have too often taken advantage of vulnerable populations. It shifts the focus back to the patient and could serve as an effective blueprint for broader 340B reform.
This rebate model provides the oversight that 340B has needed for decades, and nearly 80 percent of people agree it’s a powerful change to the status quo. Participating pharmaceutical companies are taking steps toward greater transparency, aiming to improve the patient healthcare experience and ensure cost savings reach those patients. Notably, the program also enables data collection, allowing officials to verify that hospitals are prioritizing patient access to affordable medications. If this rebate model proves more effective than the current discount model, HHS may adopt it as a permanent solution, marking a significant shift toward accountability and patient-centered care.
For years, hospitals have exploited the 340B program, diverting its benefits away from the patients it was meant to serve. This new pilot program marks a critical step toward restoring integrity and refocusing the program on its original purpose of putting patients first. By prioritizing accountability, transparency, and access to affordable medications, the rebate model offers a promising path forward. It’s a long-overdue course correction that ensures the 340B program works for those who need it most.
Kasia Mulligan is the National Spokesperson for Patients Come First.
Just recently, the Office of Pharmacy Affairs (OPA) announced the voluntary 340B rebate model. The program applies to a select group of eligible medicines and participating manufacturers, and aims to inform and guide the development of future 340B-aligned models through enhanced reporting and transparency.
The lack of transparency and accountability measures in the current discount model has enabled hospitals to pocket the discounts, intended for patients, and divert the savings to fund unrelated projects, such as infrastructure improvements. This practice undermines the very intent of the program—reducing costs for patients. In rural areas, where access to care is already limited, denying affordable treatment is especially harmful. Instead of serving patients, the program is being exploited for institutional gain and manipulated by opaque middlemen.
The 340B program is putting patients in difficult positions, particularly those who are low-income or uninsured. What was originally designed to provide cost savings is now being misused, leaving patients behind. So much that 83 percent of people support reforming the program to ensure those savings reach the patients who need them most. The demand for long-overdue changes is clear. Additionally, 77 percent agree that hospitals should be required to pass along 100 percent of the savings to patients to help lower the cost of medications. Vulnerable patients living in rural and low-income populations need this new rebate model. The public wants accountability and reform that restores the program’s original purpose.
This new pilot program should do just that by introducing a rebate model designed to ensure lower-cost medications go directly to patients. Under this approach, qualifying pharmaceutical companies can offer rebates to hospitals, but only if they verify that the discounted medications are actually reaching patients. This added layer of oversight introduces much-needed accountability for institutions that have too often taken advantage of vulnerable populations. It shifts the focus back to the patient and could serve as an effective blueprint for broader 340B reform.
This rebate model provides the oversight that 340B has needed for decades, and nearly 80 percent of people agree it’s a powerful change to the status quo. Participating pharmaceutical companies are taking steps toward greater transparency, aiming to improve the patient healthcare experience and ensure cost savings reach those patients. Notably, the program also enables data collection, allowing officials to verify that hospitals are prioritizing patient access to affordable medications. If this rebate model proves more effective than the current discount model, HHS may adopt it as a permanent solution, marking a significant shift toward accountability and patient-centered care.
For years, hospitals have exploited the 340B program, diverting its benefits away from the patients it was meant to serve. This new pilot program marks a critical step toward restoring integrity and refocusing the program on its original purpose of putting patients first. By prioritizing accountability, transparency, and access to affordable medications, the rebate model offers a promising path forward. It’s a long-overdue course correction that ensures the 340B program works for those who need it most.
Kasia Mulligan is the National Spokesperson for Patients Come First.
