Johnson & Johnson will discontinue upfront 340B drug rebates for certain hospitals, raising concerns among healthcare providers and advocacy groups. The proposed policy, set to take effect Oct. 15, would prevent certain hospitals from accessing 340B discounts for Stelara, used to treat plaque psoriasis, psoriatic arthritis and other conditions; and Xarelto, a blood thinner.
Here are four things to know regarding the development:
- Johnson & Johnson's announced its new policy in a letter sent to hospitals Aug. 23. It will eliminate upfront rebates for drugs purchased by hospitals participating in the 340B drug pricing program, designed to help safety-net providers by offering discounted medications.
- The Health Resources and Services Administration issued a warning to Johnson & Johnson about its rebate plan, emphasizing the potential violations of federal law. The agency also raised concerns that the move could limit access to affordable medications for vulnerable populations.
- Pharmacy organizations strongly criticized the drugmaker's decision, arguing that the removal of upfront rebates could exacerbate financial pressures on hospitals, ultimately affecting patient care.
- Johnson & Johnson said it will work with stakeholders to address concerns, but the timeline for implementation remains unclear.