The Department of Health and Human Services’ Health Resources and Services Administration has approved eight plans from pharmaceutical companies to participate in its 340B Rebate Model Pilot Program.

Currently, eligible 340B providers receive discounts when they purchase covered drugs but under the rebate model, covered entities continue to make purchases through their 340B wholesaler and will seek rebates from the pharmaceutical companies for the ten affected drugs dispensed to 340B-eligible patients after a purchase is made.

Providers argue that the new approach creates a new, significant administrative burden for them and could affect their cash flow while pharmaceutical companies maintain that the current approach lacks transparency and can result in providers receiving duplicate discounts for drugs.  Until recently, HRSA and the courts rejected attempts by pharmaceutical companies to unilaterally impose such a rebate approach.

The program will launch on January 1 and operate on a pilot basis for one year.

All community safety-net hospitals participate in the 340B program and view it as an essential part of their overall effort to serve their large numbers of low-income and publicly insured patients.

Learn more about the program, the participating pharmaceutical companies, and the specific drugs that will be included in the pilot program from the Fierce Healthcare article “HRSA approves 8 drugmakers’ plans for 340B rebate model pilot program” and the program’s updated web page.