U.S. agency slaps down a J&J plan to switch payments for 340B hospitals

A U.S. authorities company stated {that a} deliberate transfer by Johnson & Johnson to change cost strategies for some hospitals taking part in a controversial drug low cost program was “inconsistent” with federal legislation and requires approval earlier than the corporate can proceed.

The assertion by the U.S. Well being Assets and Providers Administration got here in response to a J&J plan to subject rebates for 2 broadly prescribed medicines as a substitute of providing discounted costs. In an Aug. 23 discover, J&J stated phrases will change for hospitals that purchase the medication — the Xarelto blood thinner and the Stelara plaque psoriasis therapy — via the 340B drug low cost program. The transfer is slated for Oct. 15.

Launched three many years in the past, the 340B program was created to assist hospitals and clinics look after low-income and rural sufferers. To make sure this system achieves this objective, drug corporations that wish to participate in Medicare or Medicaid should provide their medicines at a reduction — usually, 25% to 50%, however typically larger — to taking part hospitals and clinics.