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Becker's Healthcare November 18, 2024
Johnson & Johnson and Eli Lilly both sued the federal government this month over the future of their respective 340B drug rebate plans.
The lawsuits reflect rising tensions among drugmakers, hospitals and the Health Resources and Services Administration, which oversees the 340B program. The program allows hospitals that serve low-income and uninsured populations to purchase outpatient drugs at discounted prices. Drugmakers must participate in the program if they wish to have their products covered under Medicaid and Medicare Part B.
J&J and Eli Lilly argue their rebate plans will improve program transparency and ensure cost savings are passed onto patients. Meanwhile, hospitals and HRSA contend that the rebate plans violate 340B statute, create additional administrative burdens and threaten some...
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