NACHC and PhRMA Split on 340B Reform Discussion Draft — Health Centers Reject Manufacturer Audit Provisions as 'Program-Gutting' Threat
Congressional staff circulated a 340B reform discussion draft that would grant manufacturers new audit rights over covered entities in exchange for limiting contract pharmacy restrictions. NACHC and 340B Health immediately rejected the draft, arguing that expanded manufacturer audit rights would allow pharmaceutical companies to dispute patient eligibility across virtually any dispensing event — effectively gutting the program.
PhRMA endorsed the framework. The conflict signals that 340B reform language could be attached to the reconciliation bill as a deficit reduction mechanism, requiring FQHCs to fight simultaneously on Medicaid and drug savings fronts.
Key takeaways
- If your FQHC participates in 340B: contact your Congressional delegation now to oppose manufacturer audit provisions — this is a NACHC red line and the draft is actively advancing
- Monitor reconciliation bill text closely for 340B rider language — it could be attached as a 'savings' provision targeting health center drug program revenue in the deficit reduction package
Primary source
340B HealthFQHC Talent. (2026, April 15). NACHC and PhRMA Split on 340B Reform Discussion Draft — Health Centers Reject Manufacturer Audit Provisions as 'Program-Gutting' Threat. Primary source: 340B Health. Retrieved June 12, 2026, from https://www.fqhctalent.com/intel/nachc-pharma-340b-compromise-split-2026
More in Lobbying & Advocacy
Jun 5
California's November Ballot Becomes a Health-Care Battleground: Hospital Industry's Union-Spending Counter-Measure Qualifies, Joining SEIU-UHW's Two Clinic Measures — With a June 25 Deal Deadline
May 22
California Hospital Association Warns FQHC Closures Will Drive Up ED Visits — First Time Hospital Lobby Publicly Backs FQHC Sustainability
May 19
SEIU-UHW 90% Patient-Care Mandate QUALIFIES for Nov 3, 2026 California Ballot — Existential FQHC Governance Fight Now Confirmed
Apr 27
CalChamber 'Affordable California' Files Nearly 1 Million Signatures for November 2026 Ballot — Counter to SEIU-UHW 90% Spend Initiative