Episode 19: 340B Rebate Appeals, Trump Admin. Drug Pricing Efforts, State Updates

In this episode, 340B Report Associate Editor and Senior Writers Shannon Young and Will Newton break down the latest in 340B news, including key developments in a federal 340B rebate model court case, Health and Human Services (HHS) Secretary Robert F. Kennedy Jr.’s latest remarks on the Trump administration’s efforts to lower prescription drug prices and two New England states’ embrace of new 340B contract pharmacy access and provider reporting laws.

Key Topics Covered:

Appeals Court Expedites Schedule in 340B Rebate Case 

Will recaps recent developments in the drug industry efforts to convert upfront 340B discounts to post-purchase rebate models. After a federal district court in Washington, D.C. ruled that drugmakers cannot implement 340B rebates without HHS approval, multiple drug companies appealed. Meanwhile, hospital trade group 340B Health filed a cross-appeal arguing that the court should have ruled that the 340B statute “categorically prohibits” rebates. While those appeals play out, stakeholders are also meeting with HHS about the agency’s 340B rebate guidance, which is not yet public pending regulatory review.

RFK Jr. Touts Administration’s Drug Pricing Plans, Key Lawmaker Talks 340B

Shannon breaks down Kennedy’s recent appearance before the House Energy and Commerce Committee’s Health Subcommittee to testify on President Donald Trump’s budget proposal. While the HHS secretary did touch on the budget’s controversial plan to shift 340B oversight within the agency, Shannon notes that he touted the administration’s efforts to lower prescription drug prices through recent executive actions and endorsed pharmacy benefit manager reform efforts. She discusses how U.S. Rep. Diana Harshbarger (R-Tenn.) briefly floated the potential for renegotiated “340B contracts” during her exchange with Kennedy—comments which some 340B advocates criticized as a misunderstanding of the 340B program’s structure. Will provides an update on another drug pricing executive order.

New England States Embrace Contract Pharmacy Access, Provider Reporting Laws 

Will provides an update on Maine’s recent enactment of a contract pharmacy access and reporting law. Shannon notes that Rhode Island is on the cusp of signing similar legislation into law. With 20 states now having enacted contract pharmacy protections, Will breaks down the latest trends in state 340B legislation. He discusses the increasing number of states that have passed bills that contain both contract pharmacy access and reporting provisions in 2025. 

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