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American Hospital Association sues to block new 340B rebate pilot

10/10/2026

The American Hospital Association is suing the Trump administration to stop a new test of a federal drug discount program that would replace upfront price cuts with after-the-fact rebates.

This is the second time the hospital lobbying group has taken the government to court over a version of this plan.

In 2025, a judge temporarily halted a more limited pilot, and the Health and Human Services Department voluntarily withdrew that proposal after losing an appeal.

In February, the agency announced an expanded version of the plan, scheduled to take effect on Jan.

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