Federal Policy
AHA Urges Permanent Ban on 340B Rebate Models in SECURE 340B Act Comments
The American Hospital Association submitted comments on September 23 supporting the bipartisan SECURE 340B Act introduced in July, urging Congress to permanently prohibit rebate models in the 340B drug pricing program. The legislation combines hospital-sought protections with new program requirements. AHA stated it shares the bill's goals while seeking the rebate ban provision. This affects how safety-net hospitals and Medicaid providers access discounted pharmaceuticals under 340B, with potential implications for pharmacy carve-outs and drug purchasing arrangements in Medicaid managed care.
Why it mattersA permanent rebate ban would codify how Medicaid MCOs and providers structure 340B pharmaceutical arrangements, potentially restricting states' flexibility to use rebate models in managed care pharmacy contracts.