Fierce Healthcare August 26, 2024
Dave Muoio

A major drugmaker’s plan to trade out upfront 340B discounts for rebates has found swift pushback from both hospitals participating in the drug subsidy program and the government administration that oversees it.

Friday, Johnson & Johnson issued a notice that beginning Oct. 15 it would no longer be processing wholesaler chargebacks for two of its drugs, Stelara and Xarelto, for certain program participants.

To receive the program’s discounts, disproportional share hospital covered entities would need to submit claims for a rebate through an online platform within 45 days of dispensing (with an initial grace period of over six months).

The 32-year-old 340B program was enacted by Congress to help subsidize safety-net care providers by manufacturer discounts on most drugs administered...

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