J&J sues HHS over 340B hospital drug-discount program

Johnson & Johnson filed suit against HHS on Tuesday in federal court regarding the agency’s 340B program that provides discounted drugs to hospitals and clinics that primarily serve poor and underinsured patients.

While drugmakers usually provide those discounts upfront, in August, the drug giant made a proposal that the hospitals and clinics pay full price for the drugs up front and then submit claims to get rebates back on those drugs after ensuring the meds were used as intended under the program.

In September, HHS rebuffed that plan, saying it was violation of the law and could lead to fines.

J&J’s case aims to prevent the Health Resources and Services Administration, the part of HHS responsible for the 340B program, from rejecting its proposal, The Wall Street Journal reported.

“Johnson & Johnson is taking action to bring much needed transparency essential to helping the 340B Program achieve its original intent to support prescription drug access for vulnerable patients,” the company told the newspaper in a statement.

If J&J’s plan goes through, it would impact two of its drugs, according to the Journal: Xarelto (rivaroxaban) and Stelara (ustekinumab).

A December 2022 Journal investigation found that some hospitals that received discounted drugs through the 340B program ended jacking up the prices of them for patients and insurers.