Trump Administration Launches Pilot to Reform 340B Drug Discount Program

President Donald Trump’s administration announced a pilot reform of the 340B Drug Pricing Program, shifting from automatic upfront discounts to a rebate approach for selected medications. The change is intended to ensure that savings flow to vulnerable patients rather than bolstering the bottom lines of sprawling hospital networks. With roughly $100 billion in discounted drug purchases each year, the program has attracted criticism for limited transparency and instances of abuse, including a recent conviction of a Haitian national in Florida for siphoning $58 million.

The pilot will use claims data to confirm eligibility, reduce duplicate discounts, and prevent improper payments before they occur. It reflects longstanding warnings from the Government Accountability Office and the HHS Office of Inspector General about the program’s expanding scope and oversight gaps. Supporters argue the reform will protect taxpayer subsidies and improve program integrity without harming patient access.