Pennsylvania
Bipartisan Lawmakers Introduce 340B Rebate Model Delay Act
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Key points
- House lawmakers introduced H.R. 10770, the 340B Rebate Model Delay Act, on October 9, 2026.
- The bipartisan bill pauses the HRSA 340B rebate pilot program and maintains upfront drug discounts through December 31, 2028.
- Major national healthcare organizations, including the American Hospital Association, endorse the proposed two-year delay.
NewsWK — Federal lawmakers introduced bipartisan legislation on October 9, 2026, to protect safety-net medical centers from federal drug pricing changes. Representative Robert P. “Rob” Bresnahan, a Pennsylvania Republican, introduced HR 10770 to preserve vital purchasing discounts for healthcare providers.
What Is the 340B Rebate Model Delay Act?
The 340B Rebate Model Delay Act halts a planned administrative shift in federal drug discount rules. Specifically, the bill temporarily limits rebate usage under Title III of the Public Health Service Act. By deferring federal rule changes through December 31, 2028, this measure keeps direct financial protections in place for local safety-net hospitals.
How Will HR 10770 Impact Local Community Hospitals?
Local hospitals rely heavily on upfront savings provided by the 340B Drug Pricing Program to fund community care. Under HR 10770, pharmaceutical manufacturers must continue offering immediate discounts at the point of sale from January 1, 2027, through December 31, 2028. Therefore, hospitals can secure predictable costs without waiting for delayed rebates.
Why is a 340B rebate pilot program delay necessary for health providers? 340B Rebate Model Delay Act
Federal regulators scheduled the HRSA 340B rebate model pilot program to begin on January 1, 2027. However, the Rob Bresnahan 340B bill blocks federal funds from implementing this rebate pilot or similar programs for two years. Additionally, the legislation carves out an exception to safeguard AIDS Drug Assistance Programs.
Who Supports the Federal Legislation?
Representative Debbie Dingell, Representative Tracey Mann, and Representative Lois Frankel joined as original bipartisan co-sponsors in the 119th U.S. Congress. Next, the U.S. House referred the bill to the House Committee on Energy and Commerce. Furthermore, healthcare organizations strongly support the legislation, including:
- American Hospital Association and America’s Essential Hospitals
- Association of American Medical Colleges
- Children’s Hospital Association
- Advocates for Community Health and Alliance of Safety-Net Hospitals
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
Related: New Legislation Aims to Enhance Efficiency in 340B Drug Pricing Program
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