WASHINGTON — The Institute for Health Policy Accountability (IHPA) today responded to news that the American Hospital Association (AHA) has filed suit to block the Trump Administration’s planned 340B rebate pilot program set to launch in January 2026.

Chris Walker, Board Member of the Institute for Health Policy Accountability and former Trump campaign alum, made a statement on the lawsuit:

“It’s unfortunate that some hospital systems are suing President Trump for his leadership to reform 340b and increase transparency in federal programs that safeguard Americans. A program that was originally designed to help vulnerable and underserved patients has, for too long, been abused by too many bad actors and they are now attacking President Trump in court to keep it that way. This sends a troubling message that preserving the loopholes matters more than affordability for the patients they are supposed to serve. President Trump’s leadership to reform 340b reflects a commitment to continue to lower costs for Americans and cut waste, fraud, and abuse.”

A report from IHPA last month found wealthy non‑profit hospitals capture a dominant share (78%) of the federal 340B drug pricing program, with large revenues from hiking prices for patients on drugs hospitals receive at a discount. 

Just recently, a Senate HELP Committee hearing uncovered that numerous clinics across the country are major abusers of the 340B program, using the profits from marking up drugs to pay for Super Bowl ads and pay $500k+ CEO salaries. 

The 340B Drug Pricing Program is a federal program intended to serve as a lifeline for lower-income communities, but has instead become a powerful engine of healthcare consolidation in America. President Trump has been a staunch supporter of reforming this out-of-control program, joining his son and other conservative leaders in their critiques of the program. President Trump and allies in Washington are working to reform the 340B program.

• HHS Secretary Robert F Kennedy testified before Congress recently, acknowledging that the program is “not a straightforward program” and patients “seldom get the benefits of the drug reduction.” 
• Donald Trump Jr. X Post: “WTF!??? It’s bad enough that leftwing states are doing this crap to our kids, but Kentucky???”
• Reilly Gaines has taken to X on the topic of 340B and found that “the 340b program is being used by a Kentucky CVS to give $$$ to a Massachusetts health care provider that is doing gender transitions on kids.” 

A report by the Job Creators Network found that some hospitals participating in the 340B program are sheltering billions of dollars in profits offshore, underscoring how far the program has drifted from its charitable intent and how urgently reforms are needed to restore accountability and fairness.

According to a CBO analysis, hospitals across the U.S. have exploited the 340B Drug Pricing Program, resulting in significant waste, fraud, and abuse. The report found that the program “encourages behaviors that increase federal spending and raise prices for American taxpayers.”

The Institute for Health Policy Accountability is an independent authority on the key drivers of decision‑making in health care. IHPA provides fact‑based research and analysis across the public policy landscape, adding a central and currently missing voice to the conversation. For more information about IHPA’s research on 340B and patient affordability, please contact our media team.

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