AHA urges court to reject drug industry intervention in 340B rebate program case

The U.S. District Court for the District of Maine should deny motions by several drug companies and Pharmaceutical Research and Manufacturers of America to intervene in the lawsuit challenging the administration's revised 340B rebate model, the AHA and its co-plaintiffs argued in a filing submitted today.

The AHA and plaintiffs noted that the court previously rejected similar intervention requests in litigation over an earlier version of the 340B rebate model, finding that the federal government could adequately defend its own policy.

The AHA, Maine Hospital Association and four safety-net hospitals filed suit Oct. 9 to stop the revised rebate program, arguing that it would impose more than $1 billion in annual administrative costs on hospitals and divert resources away from patient care. The lawsuit seeks to prevent implementation of the program, which is scheduled to take effect Jan. 1, 2027.