AHA Sues HHS to Block Revised 340B Rebate Program
The American Hospital Association, Maine Hospital Association and four safety-net hospitals filed suit Oct. 9 in U.S. District Court for the District of Maine seeking to block HHS's revised 340B drug rebate pilot, set to begin Jan. 1, 2027. The plan would replace upfront discounts with post-sale manufacturer rebates for certain drugs, requiring covered entities to purchase at wholesale acquisition cost and submit claims within 45 days. Hospitals estimate the model could impose over $1 billion in annual administrative costs, nearly double HHS's own $537 million estimate, straining cash flow especially at rural and safety-net facilities. The plaintiffs are seeking a temporary restraining order, following a similar legal challenge that blocked HHS's original rebate pilot in December 2025.