AbbVie Included in New 340B Rebate Pilot Program
The Trump administration has selected AbbVie (ABBV), along with Amgen, Pfizer, and GSK among others, to participate in a new pilot program aimed at testing an alternative rebate model for drugs purchased under the federal 340B Drug Pricing Program. The initiative is part of ongoing efforts by the Department of Health and Human Services to reform how manufacturers calculate rebates paid to safety-net hospitals. The current system has been criticized as complex, with some stakeholders arguing it allows hospitals to retain a larger share of drug profits than intended under federal law. This pilot program will test whether a simpler model—where manufacturers pay rebates directly based on the difference between their average manufacturer price and negotiated prices—could better align incentives. The outcome could influence broader policy changes in how pharmaceutical companies interact with 340B hospitals, potentially affecting revenue streams for both drugmakers and healthcare providers.
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