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Hospital groups sue the Trump administration to halt a 340B pilot program set to begin in January

By STAT News  
   December 02, 2025

The American Hospital Association and several hospital systems have filed a lawsuit seeking to halt an upcoming pilot program that would alter payments for medicines purchased through a controversial federal drug discount program. At issue is the 340B discount program, which was created to help hospitals and clinics care for low-income and rural patients. Drugmakers that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics. Right now, drug companies generally provide discounts at the time of purchase. But starting last year, several drug companies sought to change payment terms, including by offering rebates to participating hospitals after a medicine is dispensed.

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