H.R. 10770: 340B Rebate Model Delay Act

This bill temporarily limits the use of rebates for prescription drugs under the 340B program and delays the implementation of the 340B Rebate Model Pilot Program.

Under current law, the 340B program generally limits the maximum price drug manufacturers participating in Medicaid or Medicare can charge eligible health care organizations for covered outpatient drugs. Beginning on January 1, 2027, and ending on December 31, 2028, the bill prohibits drug manufacturers from entering agreements with 340B organizations that require the organization to pay more than the allowable ceiling price for a covered outpatient drug at the time of purchase and subsequently receive a rebate to comply with the maximum price requirements.

The bill also delays until January 1, 2029, the implementation of the 340B Rebate Model Pilot Program. The pilot program allows approved drug manufacturers to charge 340B organizations full price for certain high-impact drugs and provide a rebate that reduces the amount paid to the allowable ceiling price after the drug is dispensed. Under the pilot program, the rebates are verified and issued on a claim-by-claim basis.

Written by the Congressional Research Service, Library of Congress.