HRSA-J&J Dispute Over 340B Rebate Plan Again Underscores Need For Program Reform

Johnson & Johnson plans to shift 340B price concessions on Stelara and Xarelto to rebates for some hospitals beginning in October, allowing for more company oversight of claims.

That didn’t take long. Johnson & Johnson ignited a new 340B confrontation between pharmaceutical manufacturers and the Health Resources and Services Administration with its recently disclosed plan to shift up-front 340B discounts for Stelara and Xarelto to back-end rebates for certain types of hospitals.

The conflict between manufacturers and HRSA and 340B “covered entities” is a consequence of the 340B program outgrowing its original...

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