J&J’s Drug Discount Plan Prompts Calls for Enforcement Actions

Johnson & Johnson’s proposal to end up-front discounts for drugs purchased by hospitals treating low-income and uninsured patients is likely to fuel potential health agency enforcement actions against the drugmaker, health attorneys say.

The Health Resources and Services Administration, operating under the Department of Health and Human Services, is pushing back on J&J’s recently proposed plan to provide drugs through a rebate rather than an up-front discount to certain health-care providers under the 340B Drug Pricing Program.

HRSA in a statement said the model is “inconsistent with the 340B statute, which requires Secretarial approval of any such proposal.” The ...