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Trump administration cannot proceed with pilot drug rebate program, US court rules
The court halted a program requiring hospitals to pay full price upfront for 10 drugs before receiving rebates, citing concerns over increased costs for safety-net providers.
- On Jan 7, the Boston-based 1st U.S. Circuit Court of Appeals blocked Health Resources and Services Administration 's 340B Rebate Model Pilot Program, Reuters reported.
- American Hospital Association leaders sued last month, alleging the pilot violated the Administrative Procedure Act, and U.S. District Judge Lance Walker issued an injunction on December 29 blocking the planned January 1 implementation.
- Under the pilot, hospitals would have been required to pay full price upfront for the first 10 medications subject to Medicare negotiation and wait for rebates later, reversing decades‑long 340B discounts by drugmakers including Eliquis, Xarelto, and Januvia.
- Plaintiffs warned the plan would saddle hospitals with hundreds of millions in extra costs, while the December 29 injunction preserved 340B upfront discounts for now.
- State Medicaid programs could see effects because they receive rebates to match Medicare prices, and the pilot intersected with the Inflation Reduction Act framework allowing HHS to negotiate maximum fair drug prices.
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Trump administration cannot proceed with pilot drug rebate program, US court rules
The Trump administration cannot require hospitals serving low-income Americans to pay full price upfront for the first 10 medications to become subject to Medicare drug price negotiations and wait for rebates, a U.S. appeals court ruled on Wednesday.
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Federal Appeals Court Rejects HHS’ Bid to Revive 340B Rebate Pilot - 340B Report
A federal appeals court in Boston last night denied the federal government’s emergency request to reinstate the 340B rebate pilot, [...] The post Federal Appeals Court Rejects HHS’ Bid to Revive 340B Rebate Pilot appeared first on 340B Report.
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