Molly Jenkins, Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that the 340B rebate model aligns with how hospitals currently operate and would enhance program efficiency and compliance. This statement was made in a PhRMA blog post.
“Any notion that the rebate model is a burden to hospitals and clinics doesn’t match how these entities already operate,” said Jenkins. “Fully implementing the rebate model would be a straightforward and efficient solution to get the program back on track. Rebates are standard practice for getting manufacturer price concessions on medicines to federal drug programs. It’s common sense.”
Established in 1992, the 340B Drug Pricing Program is administered by the Health Resources and Services Administration (HRSA). It was designed to assist healthcare providers in stretching limited resources to serve vulnerable populations by allowing eligible entities to purchase outpatient drugs at reduced prices. These savings are intended to support access to care for low-income and uninsured patients.
According to PhRMA, California’s 340B program has experienced significant growth, with hospitals maintaining over 3,500 contracts with pharmacies as of 2025. Approximately 40% of these involve out-of-state pharmacies, raising discussions about whether such arrangements align with the program’s original intent to serve vulnerable communities.
PhRMA reports that the 340B rebate model ensures hospitals and clinics receive discounted prices only after confirming they meet program rules, including eligibility and avoidance of duplicate discounts. The model builds on rebate structures already used in Medicaid and Medicare and can improve transparency and accountability without disrupting care delivery.
A report from 2024 by the National Alliance of Healthcare Purchaser Coalitions found that prices at large 340B hospitals were on average 35% higher for common outpatient services compared to non-340B hospitals. The study estimated this pricing difference results in an added $36 billion annually in healthcare costs for employers.
Jenkins focuses on communications strategies related to PhRMA’s cost and value priorities. She previously led advocacy and reputation campaigns at a public affairs firm and served in multiple communications roles on Capitol Hill, including for Representative Greg Walden. Jenkins holds an M.A. in Health Communication from Johns Hopkins University.
