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A federal law requires pharmaceutical manufacturers to sell discounted medicines to specific hospitals and clinics. That discount mechanism, the foundation of the 340B Drug Pricing Program, is now being reshaped.
The Trump administration revised the terms of a pilot effort within the program, replacing automatic upfront price cuts with a rebate model where savings arrive after the purchase, not at the point of sale.
The change takes effect January 1, 2027, and it has drawn sharp objections from hospitals.
What the current program does The 340B Drug Pricing Program is a federal requirement for pharmaceutical manufacturers to provide covered outpatient drugs at reduced prices to certain health care providers.
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