Here’s What You Need to Know
Starting on January 1, 2026, the new HRSA 340B Rebate Pilot will require Community Health Centers to pay the “sticker price” when purchasing the ten drugs subject to Medicare price negotiations. Those drugs comprise around one-third of total Medicare Part D spending, and the upfront pricing will apply to ALL units purchased (not just those for Medicare patients). After paying the full price, the CHC must wait until the drug is dispensed, then apply for a rebate on a manufacturer-funded platform, and wait for it to arrive, effectively “floating” the upfront cost of the drug throughout.
Impact on Patients:
- Reduced access to affordable medications
- Reduction in services, including dental, behavioral health, and outreach
- Disruptions to patient care and a negative impact on patient health outcomes
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Impact on access to services with the reduction in staffing or closure of facilities
Impact on Community Health Centers:
- Enormous cash flow needs that many CHCs are unable to support
- Millions of dollars in lost 340B savings, leading to closures of services or sites
- Massive new administrative costs
- Pharmacies not dispensing MFP drugs to CHC patients


