HRSA Warns Johnson & Johnson Over Planned 340B Rebate Scheme
HRSA's Warning to J&J
The Health Resources and Services Administration (HRSA) issued a stern warning to Johnson & Johnson on Tuesday, insisting that the pharma giant halts its proposed modifications to the 340B drug pricing program. These changes, if implemented, could lead to the termination of J&J’s participation in the program and significant financial penalties.
Proposed Changes and Consequences
According to the HRSA, J&J will be in violation of its obligations under federal regulations if it does not retract its plans. The proposed alterations involve requiring hospitals to purchase specific drugs, like Xarelto and Stelara, at full price before they can later obtain rebates, complicating the process for hospitals to provide necessary medications to patients.
- Potential Consequences: Termination from the 340B program
- Financial Penalties: Civil monetary penalties may apply
The new policies are set to take effect on October 15, 2024. Hospitals must file rebate requests within 45 days of dispensing, further adding to the complexity outlined in HRSA's communication.
Disclaimer: The information provided on this site is for informational purposes only and is not intended as medical advice. We are not responsible for any actions taken based on the content of this site. Always consult a qualified healthcare provider for medical advice, diagnosis, and treatment. We source our news from reputable sources and provide links to the original articles. We do not endorse or assume responsibility for the accuracy of the information contained in external sources.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.