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Injunction halts change to long-standing safety-net drug-pricing program

Two rows of empty hospital beds in healthcare clinic
Photo: Ian Forsyth/Getty Images

Under HHS’s rebate model program, safety-net providers would have to pay millions upfront for drugs that would otherwise be spent on low-income patients.

Hospital groups have blocked a contentious new drug-funding model they claimed would cost millions of dollars in lost discounts and have a detrimental effect on care for low-income and rural patients.

On December 29, 2025, the US District Court for the District of Maine issued a preliminary injunction blocking the US Department