Johnson & Johnson Nov. 12 filed a lawsuit against the Department of Health and Human Services and the Health Resources and Services Administration asking a federal court in Washington, D.C., to declare J&J’s proposed 340B rebate model legal and block the government’s attempts to prohibit its implementation. 


In a statement shared with the media Nov. 12, AHA General Counsel Chad Golder said, “After failing to persuade HRSA and a bipartisan group of nearly 200 members of the House of Representatives, Johnson & Johnson’s attempt to convince the Judiciary will fare no better. J&J’s legal arguments are completely meritless. We look forward to the courts rejecting J&J’s plan to put profits over people.” 
 
On Aug. 23, J&J announced that it would be upending its approach to 340B pricing for two of its most popular products, Stelara and Xarelto. Historically, J&J offered upfront discounts to 340B hospitals when they purchased these drugs. However, J&J’s proposal would require all disproportionate share hospitals participating in the 340B program to purchase these drugs at full price and apply for a rebate from J&J. Under J&J’s proposal, these hospitals would be required to submit certain data to J&J when they purchase the drugs at full price. After J&J verified the drug’s 340B status, it would send DSHs a rebate for the difference between the amount paid and the discounted 340B price. 
 
Immediately after J&J announced its proposal, AHA expressed concern and said HRSA should take “immediate enforcement action,” including assessing civil monetary penalties on J&J for intentionally overcharging 340B hospitals. 
 
J&J Sept. 30 said it was ceasing implementation of its 340B rebate proposal.

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…