Hospitals sue to block CMS 340B drug rebate pilot

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The American Hospital Association, joined by four community-based hospitals, has sued HHS over a pilot program to reimburse drug costs to safety net hospitals enrolled in the 340B program through a rebate—a departure of the status quo of up-front discounts. 

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The Centers for Medicare & Medicaid Services issued the 2026 CMS Interoperability Standards and Prior Authorization for Drugs proposed rule, which aims to shorten care delays and improve transparency within federal health insurance programs by establishing electronic prior authorization, or ePA, requirements for covered prescription drugs and expedite federal response deadlines to ensure patients receive life-critical medications without administrative delay.

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