J&J Drops Plan to Dispense Discounted Drugs Through Rebate Model

Johnson & Johnson will suspend its plans for providing discounted drugs through a rebate model rather than an up-front discount to hospitals treating low-income and uninsured patients after the move met fierce resistance from the Biden administration.

The drug company Monday announced in a letter to the US Health Resources and Services Administration that it will forgo the implementation of its proposed rebate model to dispense its blood thinner Xarelto and anti-inflammtatory drug Stelara to certain health-care providers under the 340B Drug Pricing Program.

Drugmakers under the federal program are required to discount drugs for qualifying hospitals, clinics, and providers ...