340B Rebate Model Pilot Program: Is Your Hospital Ready? Learn More on Dec. 19
(Dec. 12, 2025) – Covered entities – are you prepared for the 340B Rebate Model Pilot Program that the Health Resources and Services Administration is implementing effective Jan. 1? At the end of October, HRSA announced its approval of nine manufacturer rebate model applications. HRSA limited the rebate model pilot in 2026 to the ten drugs selected for pricing negotiation through the Inflation Reduction Acts Medicare Part D price negotiation program (Medicare's maximum fair price program). Nine drugs (Eliquis, Enbrel, Farxiga, Imbruvica, Januvia, Jardiance, Novolog (various), Stelara and Xarelto) will be subject to the rebate pilot model effective Jan. 1, 2026, and Entresto will be subject to the rebate pilot model effective April 1, 2026.
All manufacturers participating in the rebate model pilot have indicated they will use the Beacon IT platform to manage the rebate program. Covered entities will gain access to 340B rebate payments by submitting valid 340B-eligible dispense or administration data to Beacon, so they will need to register with Beacon. If your facility is a covered entity and has not yet registered in Beacon, now is the time to do so. The documentation required for registration includes the following, and CEs will want to have this available when registering: Employer Identification Number, CP-575 Letter (IRS letter stating the EIN), Articles of Incorporation and W-9 (most recent revision provided by the IRS).
Beacon Support will review the documentation and notify CEs of any additional information needed to complete registration. It is expected that registration verification could take up to five business days for Beacon to finish. Once verified, Beacon will email CEs with a link to create a login. During registration, CEs will also need to enter bank account information for the accounts where rebates will be paid.
Covered entities should discuss with their third-party administrators and contract pharmacies all the steps needed to prepare for the rebate model pilot. HRSA has 340B rebate model pilot FAQs on their webpage. There are also FAQs on the rebate model on Beacon.
KHA is hosting an educational webinar: 340B Rebate Model Pilot – Is Your Hospital Ready? from noon to 1:00 p.m. on Friday, Dec. 19. Participants will hear from KHA member 340B hospitals, including a 340B consultant pharmacist, who will share how their facilities have prepared for the implementation of the 340B rebate model pilot.
--Karen Braman