340B HEALTH URGES HRSA TO BLOCK J&J PLAN TO REPLACE 340B DISCOUNTS WITH REBATES
WASHINGTON, D.C.— 340B Health has called on the Health Resources & Services Administration (HRSA) to take immediate action in response to Johnson & Johnson (J&J) threatening the integrity of the 340B drug pricing program. J&J has alerted 340B hospitals that it is planning to make a major change to the way it offers 340B pricing by replacing upfront 340B discounts on its eligible drugs with rebates.
In response, 340B Health has submitted a formal request to HRSA noting that such a unilateral policy shift would violate 340B statute and harm safety-net hospitals, and we urge the agency to announce immediately that drugmakers must continue offering upfront discounts as required by federal law.
The following can be attributed to Maureen Testoni, President and CEO of 340B Health:
“This move undermines the very foundation of the 340B program, which is designed to provide discounted pricing at the time of purchase. Moving to a rebate system would be a violation of the 340B statute’s requirement that drugmakers provide eligible drugs ‘for purchase at or below the applicable ceiling price’ and would conflict with HRSA’s longstanding interpretation of that language as requiring upfront discounts. This shift would impose massive financial and administrative burdens on 340B hospitals, which serve vulnerable patients and underserved communities. It would force these financially strapped hospitals to incur significant costs and float revenue to drug companies by paying full price for 340B-eligible drugs. These hospitals would go without vital resources they need to treat their patients in need while drugmakers and third parties determine when — and whether — to approve 340B rebates.”
“Any deviation from the upfront discount model not only contradicts the 340B statute but also jeopardizes the ability of safety-net hospitals to deliver care. We call on HRSA to act swiftly to prevent any erosion of the 340B program's benefits.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285