A U.S. government agency said that a planned move by Johnson & Johnson to alter payment methods for some hospitals participating in a controversial drug discount program was “inconsistent” with federal law and requires approval before the company can proceed.
The statement by the U.S. Health Resources and Services Administration came in response to a J&J plan to issue rebates for two widely prescribed medicines instead of offering discounted prices. In an Aug. 23 notice, J&J said terms will change for hospitals that buy the drugs — the Xarelto blood thinner and the Stelara plaque psoriasis treatment — through the 340B drug discount program. The move is slated for Oct. 15.
Launched three decades ago, the 340B program was created to help hospitals and clinics care for low-income and rural patients. To ensure the program achieves this goal, drug companies that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics.
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