• Print

Details

Published: Friday, 21 November 2025 10:25

Written by 340B Editor

Walgreens, the nation’s second-largest pharmacy chain, announced on November 20, 2025 that starting **December 23, 2025**,

it will temporarily stop giving 340B discounts at its contract pharmacies for two groups of high-cost drugs:

1. **Nine drugs in HRSA’s new 340B Rebate Pilot** (starts January 1, 2026)
2. **All ten drugs picked for the Inflation Reduction Act’s (IRA) first Medicare price negotiations** (new lower prices also start January 1, 2026)

The one exception: Novartis’ heart drug **Entresto** will still get 340B discounts until April 1, 2026 (that’s when its rebate pilot rules kick in), but it will lose the 340B discount for Medicare Part D prescriptions starting December 23 because of the IRA rules.

Why is Walgreens doing this?

In a letter to hospitals and clinics (covered entities), Walgreens said:
- They are still building the computer systems needed for the new 340B rebate program.
- They don’t know exactly when those upgrades will be ready.
- To make sure they follow the new federal rules and avoid giving the same discount twice (“duplicate discounts”), they will “carve out” (remove) these drugs from 340B contract pharmacy claims for all patients starting Dec. 23.

This gives clinics a little time to stock up on the drugs at 340B prices before January 1.

How many places does this affect?
More than **2,000 hospitals, clinics, and health centers** across the U.S. use at least one Walgreens as a contract pharmacy, according to HRSA data.

In Summary

Starting just before Christmas 2025, if a patient fills one of these 10 expensive drugs at a Walgreens that serves as a “contract pharmacy” for a 340B clinic or hospital, the clinic will no longer get the big 340B discount for that prescription (except Entresto until April). Walgreens says it’s temporary while they update their systems, but 340B providers say it will hurt patients and wasn’t required.