Here are four things to know regarding the development:
- Johnson & Johnson’s announced its new policy in a letter sent to hospitals Aug. 23. It will eliminate upfront rebates for drugs purchased by hospitals participating in the 340B drug pricing program, designed to help safety-net providers by offering discounted medications.
- The Health Resources and Services Administration issued a warning to Johnson & Johnson about its rebate plan, emphasizing the potential violations of federal law. The agency also raised concerns that the move could limit access to affordable medications for vulnerable populations.
- Pharmacy organizations strongly criticized the drugmaker’s decision, arguing that the removal of upfront rebates could exacerbate financial pressures on hospitals, ultimately affecting patient care.
- Johnson & Johnson said it will work with stakeholders to address concerns, but the timeline for implementation remains unclear.
