Press Release: 2/12/2026

Release: Reps. Auchincloss and Bergman Defend FQHCS From Financial Constraints Amidst 340B Reform

 

Contact: Georgina.Burros@mail.house.gov (Auchincloss)

WASHINGTON, D.C. – Representatives Jake Auchincloss (D, MA-04) and Jack Bergman (R-MI-01) introduced the Community Health Center Drug Pricing Protection Act to exempt Community Health Centers (CHCs) and Federally Qualified Health Centers (FQHC) from the Trump administration’s proposed 340B Rebate Model Pilot Program.

CHCs are effective stewards of health care dollars, accounting for just one percent of U.S. health care spending while treating ten percent of Americans. CHCs and FQHCs provide care to medically underserved, low-income, and rural communities while operating on the thinnest margins in the health care system. The 340B Program allows these providers to purchase outpatient drugs at discounted prices and reinvest those savings directly into patient care, guaranteeing access to care regardless of a patient’s ability to pay.

Recent efforts by federal regulators and drug manufacturers to shift the 340B Program from an up-front discount model to a rebate-based model for CHCs would force health centers to pay the full price of drugs up front and wait for reimbursement. This approach would strain already limited resources and undermine existing patient care.

The Community Health Center Drug Pricing Protection Act would exempt FQHCs and CHCs from rebate-based pricing by prohibiting manufacturers from charging more than the 340B ceiling price at the time of purchase. This would provide CHCs and FQHCs with financial reprieve in the near-term while lawmakers continue to negotiate on the 340B Program. The bill would protect access to care while keeping faith with Congress’s original intent for the 340B Program.

“The 340B program needs reform, but not on the backs of community health centers. Congress must ensure that both sections 330 and 340 are financially supporting health centers as the pillars of primary care in America,” said Rep. Auchincloss.

“Community Health Centers are a lifeline for rural and underserved communities, and the 340B Program must work the way Congress intended,” said Rep. Bergman.“Forcing these providers to front the full cost of expensive drugs and wait on rebates would put patient care at risk. This bipartisan bill ensures health centers can keep resources where they belong - delivering care to the patients who need it most.”

“I want to thank Congressman Bergman and Congressman Auchincloss for sponsoring this bill to exempt Community Health Centers from any future 340B rebate pilots. The 340B program is a lifeline for the 34 million patients health centers serve nationwide, and every dollar of savings is reinvested into patient care—helping cover the cost of medications and expanding access to services like dental, vision, and behavioral health. A rebate model would shift financial risk onto safety-net providers who cannot afford to front full drug prices while waiting for reimbursement. That would destabilize community health centers, jeopardize patient care, and undermine the intent of the 340B program,” said Michael Curry, President & CEO, Massachusetts League of Community Health Centers.

“The Community Health Center Drug Pricing Protection Act will provide critical protection for FQHCs from the harmful impacts on our patients and health centers of a 340B rebate-based pricing model,” said Phillip Bergquist, Chief Executive Officer, Michigan Primary Care Association. “A 340B rebate model would disrupt access to needed medications and treatments for our patients and place significant administrative, financial, and operational burdens on health centers. We applaud this effort to preserve the 340B program’s intent of increasing access to affordable medications and defend health centers' ability to utilize the 340B program to support access to essential care for patients.”

“Community Health Centers (CHC) serve 52 million people — including 1 in 3 rural residents — and the 340B program is essential to keeping care within reach for all Americans. Exempting CHCs from any rebate model ensures that every 340B dollar continues to support affordable medications and access for low income and rural communities who rely on us the most. We are grateful to Congressman Jack Bergman for leading this bill that protects the care CHC patients depend on every day,” said Kyu Rhee, MD, MPP, President and CEO, National Association of Community Health Centers.