Johnson & Johnson announced Aug. 23 that it would be fundamentally changing the way it makes 340B pricing available for two of its most popular products, Stelara and Xarelto. Starting Oct. 15, J&J will require all disproportionate share hospitals participating in the 340B Drug Pricing Program to purchase these drugs at full price and submit data to J&J. Upon verification of the drug’s 340B status, DSHs would receive a rebate for the discounted 340B price.

Last week, the AHA contacted the Health Resources and Services Administration for more information as soon as it was made aware that J&J was considering these actions. HRSA notified the AHA today that it has informed J&J that its rebate model is inconsistent with the 340B statute and that this model has not been approved by the Secretary of the Department of Health and Human Services. HRSA further informed the AHA that it will take appropriate action as warranted.
 

Related News Articles

Headline
A U.S. district court judge for the District of Columbia May 15 ruled the Department of Health and Human Services must preapprove the use of 340B “rebate…
Headline
The AHA May 14 filed an amicus brief in the U.S. District Court for the District of South Dakota in defense of the state’s 340B contract pharmacy law…
Headline
The AHA May 9 urged the Department of Health and Human Services to deny drug companies’ requests to approve their unlawful 340B rebate models. “The 340B…
Headline
The AHA May 8 filed an amicus brief in the U.S. District Court for the District of Nebraska in defense of the state’s 340B contract pharmacy law prohibiting…
Headline
The AHA May 1 expressed concerns to the Centers for Medicare & Medicaid Services about the payment process established under the Medicare Drug…
Headline
Senate Health, Education, Labor, and Pensions Committee Chairman Bill Cassidy, M.D., R-La., today released a report detailing findings from an investigation…