WASHINGTON (September 27, 2024) – AIDS Healthcare Foundation (AHF) welcomes the strong stand the U.S. Health Resources and Services Administration (HRSA) took today against Johnson & Johnson’s illegal actions that would destroy the 340B Drug Pricing Program. See HRSA Response to J&J’s September 19, 2024 Letter
J&J’s illegal scheme will deny required 340B discounts to eligible safety net covered entities and instead provide rebates if and when it chooses. J&J’s scheme may or may not reimburse providers at a later date, cheating safety net providers, making every claim subject to dispute and protracted payment. J&J is violating the law and AHF is pleased that HRSA has swiftly responded.
Drug companies who want the lucrative opportunity to sell their medications to the multi-billion-dollar Medicaid and Medicare drug programs, by law, must offer discounts to eligible nonprofit healthcare providers, such as nonprofit rural hospitals, HIV and black lung disease clinics. If J&J doesn’t want to comply with the law, HRSA is saying that it will block it from selling its products to the taxpayer supported Medicaid and Medicare drug markets. J&J can’t unilaterally rewrite healthcare law.
AHF calls on the U.S. Congress to take swift action to explicitly outlaw this blatant illegal action which would blow a hole in the U.S. healthcare safety net.
