The Health Resources and Services Administration (HRSA) issued a notice announcing the application process for the 340B rebate model pilot program and requesting public comment. The notice sets the parameters of 340B rebate models that HRSA will be willing to review and approve. Approved 340B rebate models may be implemented as early as January 1, 2026.
While participation in the 340B rebate model pilot program is voluntary for manufacturers, participation appears to be mandatory for 340B covered entities with regard to the 340B rebate models that HRSA approves. HRSA indicated that it may modify or expand the pilot in future years.
The guidance is materially more favorable to 340B covered entities than the 340B rebate models that certain drug manufacturers proposed or attempted to implement in late 2024. The pilot will limit 340B rebate models to drugs that have been selected for the Medicare drug price negotiation program (MDPNP) and appears to further limit 340B rebate models to drugs that are billed to patients’ prescription drug benefit plans. However, the notice explicitly states that the 340B rebate model plans will apply to drugs selected for the MDPNP, regardless of payor – in other words, they will not be limited to Medicare Part D.
Stakeholders should carefully review the 340B rebate models described in the notice and consider submitting comments to HRSA. HRSA will accept comments through August 30, 2025.
Summary of the notice
Manufacturers that would like to participate in the pilot must submit applications describing their [...]
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