WASHINGTON (September 30, 2024) – Thanks to a clear warning (see HRSA letter HRSA Response to J&J’s September 19, 2024 Letter ) from the U.S government that J&J’s plan to destroy the 340B Drug Pricing Program is illegal, the drug industry giant sent a letter raising the white flag of retreat today (See J&J’s September 30, 2024, letter here). AIDS Healthcare Foundation (AHF) issued the following statement:
J&J’s illegal scheme would have denied required 340B discounts to eligible healthcare safety net covered entities and instead provided rebates if and when it chose to do so. J&J may or may not have reimbursed providers at a later date, cheating safety net providers, making every claim subject to dispute and protracted payment. J&J’s scheme violates the law, and AHF is pleased that HRSA has responded swiftly.
J&J’s hypocritical blather about making 340B “sustainable” belies its actions. Multiple J&J annual price increases aren’t sustainable, and J&J’s flurry of extra-legal restrictions on contract pharmacies isn’t sustainable.
J&J’s retreat shows its “340B is not sustainable” argument is nonsense and should be disregarded whenever it is raised. Drug companies will not quit the lucrative taxpayer-funded Medicaid and Medicare drug markets.
