AHA Voices Support for 340B Rebate Model Delay Act (H.R. 10770)

October 15, 2026

Dear Representatives Bresnahan and Dingell:

On behalf of our nearly 5,000 member hospitals, health systems and other healthcare organizations, including more than 2,000 hospitals and health systems that participate in the 340B Drug Pricing Program, our clinician partners, including more than 270,000 affiliated physicians, 2 million nurses and other caregivers, and the 43,000 healthcare leaders who belong to our professional membership groups, the American Hospital Association (AHA) writes in support of the 340B Rebate Model Delay Act (H.R. 10770).

The 340B program helps eligible hospitals stretch limited federal resources to provide comprehensive care to low-income, uninsured, and rural patients and communities. For more than 30 years, hospitals have received 340B discounts at the point of sale. Replacing upfront discounts with a rebate mechanism requires hospitals to pay full price for outpatient drugs, submit extensive claims data, and then wait for manufacturers to determine whether, when and how much of a rebate to provide. This fundamental change would shift financial risk onto hospitals, impose substantial administrative costs without corresponding benefits, and give drug manufacturers unprecedented control over hospitals’ receipt of discounts to which they are legally entitled. These burdens would fall most heavily on rural, safety-net and financially vulnerable hospitals, diverting scarce resources away from patient care. 

By pausing the Department of Health and Human Services’ (HHS) rebate program, your legislation would protect hospitals, patients and communities while Congress works toward durable, long-term improvements to the 340B program.

We appreciate your leadership on this important issue. The AHA looks forward to working with you to preserve this critical program for the hospitals, patients and communities who depend on it. Please contact Aimee Kulman, AHA group vice president of advocacy and grassroots, at akuhlman@aha.org if you have questions. 

Sincerely,

/s/

Stacey Hughes 
Executive Vice President