WASHINGTON, DC — On October 9, U.S. Representatives Rob Bresnahan, Jr. (PA-08), Debbie Dingell (MI-06), Tracey Mann (KS-01) and Lois Frankel (FL-22) introduced the 340B Rebate Model Delay Act, bipartisan legislation to delay implementation of the federal government’s 340B rebate model, citing concerns that the new system could create significant financial and administrative risks for healthcare providers and patients.

“Patients and providers should not have to bear the risks of an untested change to a program that helps deliver affordable medicines to communities across the country,” said Bresnahan. “Congress needs more time to evaluate the potential financial and administrative consequences of the rebate model and ensure that any changes to 340B protect patients and the providers who serve them.

Under the rebate model, participating providers would pay the full price of certain prescription drugs upfront and receive the 340B discount later through rebates. This could create cash-flow pressures, increase administrative burdens, and make it more difficult for community health centers, hospitals, and other safety-net providers to maintain access to affordable medications.

“Families in Michigan are already struggling to pay for healthcare,” said Dingell. “Safety-net providers are not in the financial position to front this money, especially in light of Medicaid cuts, and will either have to hike up prices for patients or stop offering lifesaving drugs. This bill would delay the implementation of this rebate model so we can ensure people’s lives are not put at risk.”

“Rural hospitals and health care providers across the Big First District rely on the 340B program to stretch limited resources and continue providing quality care close to home,” said Mann. “The new rebate model would force these providers to pay higher upfront costs and wait to be reimbursed, putting unnecessary financial strain on facilities that already operate on tight margins. This legislation provides certainty for our rural health care providers by stopping the rebate model through 2028 and protecting their ability to serve patients in rural communities.”

“Safety-net hospitals and community health centers are lifelines for low-income families, seniors and people without health insurance,” said Frankel. “Our bipartisan bill stops a new requirement forcing these providers to pay full price for prescription drugs and then wait for rebates. Their limited resources should go toward caring for patients, not waiting for drug companies to pay them back. We should be making it easier for people to get the medicine they need, not putting more financial strain on the hospitals and clinics they depend on.”

The 340B Drug Pricing Program allows eligible healthcare providers serving underserved communities to purchase covered outpatient drugs at discounted prices and stretch limited resources to provide care.

The 340B Rebate Model Delay Act is endorsed by Advocates for Community Health, America’s Essential Hospitals, Children’s Hospital Association, National Association of Community Health Centers, Catholic Health Association, Alliance of Safety-Net Hospitals (ASH), Health West, Hospital Association of Pennsylvania (HAP), 340B Health, American Society of Health-System Pharmacists, Ryan White Clinics for 340B Access, American Association of Medical Colleges, National Rural Health Association, Michigan Primary Care Association, Florida Association of Community Health Centers, Community Health Center Association of Mississippi, Idaho Community Health Center Association, Community Health Center Association of Connecticut, Georgia Primary Care Association, Oregon Primary Care Association, Washington Association for Community Health, and American Hospital Association.