Trump Administration, HRSA Launch Pilot Addressing 340B Drug Rebates, MFN Pricing Targets Genentech and Gilead

The Trump administration has proposed a pilot initiative aimed at addressing controversies surrounding the 340B drug discount program, which provides discounted medicines to hospitals and Medicare beneficiaries. This pilot program, launched by the Health Resources and Services Administration (HRSA), seeks to implement drug rebates under the 340B framework. The move follows broader efforts by the administration to influence drug pricing policies, including the 'most favored nation' (MFN) drug pricing decree targeting pharmaceutical companies such as Genentech and Gilead. The MFN approach is seen as a potential precursor to mandatory nationwide Medicare demonstration programs designed to control drug costs.