J&J Sues HHS Over Threat to Rebate Model in Drug Discount Plan

Johnson & Johnson is challenging a federal health agency for blocking its plan to discount drugs through a rebate model rather than up-front discounts to hospitals treating low income and uninsured patients.

J&J filed a lawsuit Tuesday in the US District Court for the District of Columbia alleging the US Health Resources and Services Administration acted unlawfully when it warned the drugmaker against rolling out a plan to discount drugs under the 340B Drug Pricing Program through a rebate model.

“HRSA’s attempts to bar J&J from bringing transparency to the 340B Program through implementation of the Rebate Model are fundamentally ...