American Hospital Association sues again to block new 340B rebate pilot

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Summary · why it matters

The American Hospital Association has filed a new lawsuit to halt a revised rebate pilot for the 340B Drug Pricing Program, days after the Health Resources and Services Administration announced it. The suit, filed Thursday in a federal court in Maine by the AHA, the Maine Hospital Association and four safety-net hospitals, names the Health and Human Services Department and HRSA as defendants. The pilot allows 10 pharmaceutical manufacturers to offer after-the-fact rebates instead of upfront discounts on 21 drugs purchased under the program, and is set to take effect on Jan. 1 with participants including AbbVie, Amgen, Astellas, AstraZeneca, Bristol Myers, GSK, Merck, Pfizer and Teva. The complaint seeks a temporary and permanent block, arguing the pilot does not account for substantial costs providers will incur by buying drugs at market prices and then applying for rebates. The Trump administration's first 340B rebate pilot, covering only 10 medicines, was blocked by a federal judge in December after an earlier AHA lawsuit, and HHS formally withdrew the plan in January after losing on appeal.

Impact on assets 18

Biotech & Genomic Medicine▲
Astellas Pharma Inc.
4503
± MixedRegulationrelevance

Identified as a participant in the 340B rebate pilot whose implementation the AHA is seeking to halt.

AbbVie Inc
ABBV
± MixedRegulationrelevance

Named as one of 10 manufacturers participating in the 340B rebate pilot now being challenged by the AHA lawsuit.

Amgen Inc
AMGN
± MixedRegulationrelevance

Named as one of 10 manufacturers participating in the 340B rebate pilot now being challenged by the AHA lawsuit.

AstraZeneca PLC
AZN
± MixedRegulationrelevance

Listed as a participating manufacturer in the 340B rebate pilot that the AHA is suing to block.

Bristol-Myers Squibb Company
BMY
± MixedRegulationrelevance

Named as one of 10 manufacturers participating in the 340B rebate pilot now being challenged by the AHA lawsuit.

GSK plc
GSK
± MixedRegulationrelevance

Named among the manufacturers in the 340B rebate pilot targeted by the new AHA lawsuit.

Merck & Company Inc
MRK
± MixedRegulationrelevance

Named as one of 10 manufacturers participating in the 340B rebate pilot now being challenged by the AHA lawsuit.

Pfizer Inc
PFE
± MixedRegulationrelevance

Named as one of 10 manufacturers participating in the 340B rebate pilot now being challenged by the AHA lawsuit.

Health Care▲
Aging Population▲
Critical Materials & Supply Chain▲