Molly Jenkins, Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that expanding the administration’s rebate pilot would help reduce hospital abuse of the 340B program and increase program integrity. This statement was made in a PhRMA blog post.
"It's about accountability and transparency," said Jenkins. "The rebate model is a commonsense tool and should be expanded to cover all medicines and address broader program integrity concerns. The administration's rebate pilot is a positive first step toward addressing hospital abuse of the 340B program. Fully implementing the rebate model."
Established in 1992 and administered by the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program was created to assist healthcare providers in stretching limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices, with savings intended to support access to care for low-income and uninsured patients.
According to PhRMA, 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, aiming to 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 is Director of Public Affairs at PhRMA, where she focuses on communications strategies related to the organization’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 a Master of Arts in Health Communication from Johns Hopkins University.
