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Appeals court says drugmakers need HHS approval for a 340B rebate model

Federal

Issue

On July 21, 2026, the federal appeals court in D.C. Ruled that Novartis and Johnson & Johnson cannot replace up-front 340B discounts with rebates unless the HHS Secretary approves, the American Hospital Association reported. The ruling keeps the up-front discounts that health centers and their contract pharmacies rely on.

HHS could still approve a rebate model later.

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Cite this analysis

FQHC Talent. (2026, July 21). Appeals court says drugmakers need HHS approval for a 340B rebate model. Source: American Hospital Association (reporting the D.C. Circuit ruling). Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/dc-circuit-340b-rebate-model-hhs-approval-july-2026