340B rebate pilot would cost hospitals $400M: AHA

If HHS’ 340B rebate model pilot proceeds as planned, more than 2,700 U.S. hospitals will collectively be saddled with approximately $400 million in operational costs and 11.2 million labor burden hours, according to the American Hospital Association.  The rebate model, slated to go into effect Jan. 1, will allow drug manufacturers that are part of CMS’ first cycle of negotiated drug prices to provide rebates — rather than upfront discounts — for 340B entities. Congress established the 340B program in 1992 to require drugmakers to sell specific outpatient drugs to eligible providers at discounted prices. 

The AHA has sent multiple letters to Thomas Engels, administrator of HHS’ Health Resources and Services Administration, regarding concerns about the pilot program. In a Sept. 30 letter, t