AIDS Healthcare Foundation (AHF) welcomes the PROTECT 340B Act of 2026 introduced yesterday by Representatives Doris Matsui (D-CA) and Tracey Mann (R-KS) and a cadre of bipartisan cosponsors. The legislation would terminate the Trump administration’s rebate model pilot program before its planned implementation on January 1, 2027 – if implemented, the pilot initiative would change how nonprofit healthcare providers access their prescription drug purchase savings – from upfront discounts to rebates on the back end of transactions. In addition, the bill would prohibit pharmacy benefit managers (PBMs) from subjecting 340B safety-net providers to discriminatory reimbursements, unfair fees, and restrictive pharmacy networks.

The legislation would preserve the status quo for how nonprofit providers access the savings they rely upon for delivering high-quality health services to low-income Americans. The pharmaceutical industry prefers converting 340B to a rebate program in which every prescription drug purchase becomes subject to dispute and protracted payment.

“The 340B program is a critical lifeline for providers like AHF that care for people living with HIV as well as rural providers already operating on shoestring budgets that need their savings upfront just to keep their doors open. Ultimately, the bill stops drug companies that want to delay and deny how safety-net providers get their savings and bars abusive practices by PBMs that siphon away savings Congress intended to strengthen the healthcare safety-net,” said John Hassell, National Director of Advocacy for AHF.

With the rebate pilot program set to take effect on January 1, 2027, there is no time to waste. AHF encourages the lawmakers that understand the critical importance of 340B to enact their legislative agenda before the end of the 119th Congress.

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 3.3 million individuals across 50 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. In January 2025, AHF received the MLK, Jr. Social Justice Award, The King Center’s highest recognition for an organization leading work in the social justice arena. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, and follow us on Instagram, Twitter, and TikTok.

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The pharmaceutical industry prefers converting the lifesaving 340B drug pricing program into a rebate program in which every prescription drug purchase becomes subject to disputes and protracted payment delays.