340B HEALTH APPLAUDS HRSA’S ACTION TO PROTECT 340B FROM J&J’S REBATE SCHEME
WASHINGTON, D.C.— Today, the Health Resources & Services Administration (HRSA) sent a strong letter to Johnson & Johnson (J&J) describing specific enforcement action it will initiate if J&J does not advise the agency this Monday, Sept. 30, that it will cease implementation of its unlawful rebate model for 340B disproportionate share (DSH) hospitals, scheduled to go into effect on October 15. The process could lead to massive sanctions on J&J by removing J&J drugs from qualifying for Medicaid and Medicare Part B coverage for all the company’s drugs and millions of dollars in federal fines. HRSA has made it clear that the rebate model violates the 340B statute, reaffirming the program's critical role in supporting safety-net hospitals and the patients they serve.
The following statement can be attributed to Maureen Testoni, 340B Health president and CEO:
“We fully support HRSA’s decision to initiate these strong enforcement actions against Johnson & Johnson’s unlawful rebate model, as there is no moment to lose to avoid harm to 340B hospital patients. HRSA’s enforcement of the 340B law sends a clear message that it will not allow J&J to compromise the care provided by our nation’s safety-net hospitals to millions of patients nationwide. Attempts by J&J to undermine 340B through this unauthorized plan violate federal law and J&J’s written agreements with HHS promising to provide 340B discounts to hospitals serving a disproportionate share of low-income patients in return for access to the lucrative Medicaid and Medicare Part B markets that serve millions of Americans. We join this clarion call for J&J to comply with the law and cease its actions immediately.”
“Safety-net hospitals provide 67% of the nation’s unpaid care and 77% of Medicaid hospital care for at-risk patients and underserved communities. 340B Health and its more than 1,500 hospital members stand with HRSA in its efforts to protect 340B.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285