Arlington, VA-The American Consumer Institute (ACI) submitted comments on the proposed extension of the 340B Rebate Model Pilot Program, arguing that while rebates may help address shortcomings, they do not resolve deeper structural flaws within the 340B Drug Pricing Program. ACI highlighted how program expansion—particularly through contract pharmacy arrangements—has shifted benefits away from low-income and uninsured patients toward higher-income markets and well-capitalized hospital systems.
The current framework incentivizes revenue generation over patient support, contributing to higher drug prices, and weakening the program’s original safety-net purpose. ACI urged regulators to pursue comprehensive reforms, including stricter eligibility standards, expanded access for underserved providers, and increased transparency to ensure savings are directed toward the vulnerable populations the program was designed to serve.
Read ACI’s comments here.
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The American Consumer Institute is a nonprofit education and research organization.