The Health Resources and Services Administration Sept. 27 sent a final warning letter to Johnson & Johnson urging the company to inform the agency by Monday, Sept. 30 that it would halt its proposed 340B rebate model scheduled to go into effect next month. 

“As outlined in HRSA’s September 17, 2024, letter, if J&J proceeds with implementing its rebate proposal without Secretarial approval, it will violate section 340B(a)(1) of the Public Health Service Act,” HRSA wrote today. “If J&J has not notified HRSA that it is ceasing implementation of its rebate proposal by September 30, 2024, HRSA will begin the process outlined in J&J’s Pharmaceutical Pricing Agreement related to terminating the agreement. In addition, if J&J moves forward with implementation of its rebate proposal, HRSA will initiate a referral to the HHS Office of Inspector General pursuant to 42 U.S.C. § 256b(d)(1)(B)(vi).” 
 
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 said starting Oct. 15 it will 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 the new program, these hospitals would be required to submit certain data to J&J when they purchase the drugs at full price. After J&J verifies the drug’s 340B status, it will send disproportionate share hospitals a rebate for the difference between the amount paid and the discounted 340B price. 
 
Immediately after J&J’s announcement, AHA expressed concern and said HRSA should take “immediate enforcement action,” including assessing civil monetary penalties on J&J for intentionally overcharging 340B hospitals.
 

Headline
The Centers for Medicare & Medicaid Services has released a fact sheet and FAQs on the 340B Part D claims data repository that will go live Oct. 1. Data…
Headline
The AHA Aug. 26 urged the Centers for Medicare & Medicaid Services not to finalize two proposals in the calendar year 2027 outpatient prospective payment…
Headline
The AHA Aug. 25 submitted comments to Sen. Bill Cassidy, R-La., on the 340B Drug Pricing Integrity and Affordability for Patients Act (340B for Patients Act),…
Headline
A bipartisan group of senators Aug. 5 introduced the Supporting Underserved and Strengthening Transparency, Accountability and Integrity Now and for the Future…
Headline
The Department of Health and Human Services today issued a notice announcing a revised 340B Rebate Model Pilot Program, allowing qualifying drug manufacturers…
Headline
The U.S. District Court for the District of Columbia July 21 upheld a lower court’s decision that Section 340B of the Public Health Service Act does not …