340B Drug Pricing Program

The 340B Drug Pricing Program is essential to many hospitals’ ability to provide healthcare services, including access to medications for uninsured and underinsured patients.

Recent actions by the Department of Health and Human Services (HHS) and drug manufacturers have undermined the 340B program and jeopardized patient care services it supports.

How ASHP is Advocating to Protect the 340B Program

Model State Legislation

• Contract Pharmacy Protections and Claims Data
  • ASHP developed model state legislation with 340B Health to prohibit manufacturers from restricting distribution of 340B discounted medications to contract pharmacies, or conditioning 340B pricing on sharing of covered entity claims data 
  • 20 states have laws banning manufacturer restrictions on contract pharmacies (as of March 2026)
• Payer Discrimination 
  • ASHP has developed model state legislation prohibiting payers from discriminating against covered entities by selectively reducing reimbursement for 340B priced medications 
  • 35 states have passed laws aligned with our model legislation on payer discrimination (as of March 2026)

Litigation

• ASHP has invested significant financial and staff resources in filing legal briefs to defend 340B state laws. 
• ASHP partners with the American Hospital Association, 340B Health, America’s Essential Hospitals, and the Children’s Hospital Association to file amicus briefs in support of state lawsuits protecting 340B contract pharmacies. These amicus briefs are part of a comprehensive strategy to defend state laws protecting covered entities from manufacturer litigation.  
• ASHP and our partners have so far filed over 40 briefs in federal courts across 17 states.

340B Rebate Model

• ASHP strongly opposes the imposition of any rebate model within the 340B Drug Pricing Program. ASHP’s comments to HRSA regarding the pilot program highlighted its serious negative ramifications for patients and the hospitals and pharmacies that serve them. ASHP urges the agency to abandon the model.
• ASHP members also joined a call to action that led 160 members of Congress to ask the Department of Health and Human Services to stop implementation of the 340B pilot program. 
• In a letter to the Centers for Medicare & Medicaid Services (CMS), ASHP and its partners urged CMS to use its authority to require manufacturers to provide access to the IRA negotiated drug price through an upfront discount, which would reduce administrative burden, improve price transparency, and support provider sustainability.

Claims Data

• ASHP urged the Health Resources and Services Administration (HRSA) to direct Eli Lilly to end its new policy requiring hospitals and health systems that participate in the 340B Drug Pricing Program to submit comprehensive claims-level data before receiving discounted medications.
• ASHP’s model state legislation with 340B Health also includes a provision prohibiting manufactures from requiring submission of claims data as a condition of receiving 340B pricing.