CHA News

Johnson & Johnson Halts Proposed 340B Rebate Model

What’s happening: Johnson & Johnson will stop its plan that would have required hospitals participating in the 340B drug discount program to purchase Stelara and Xarelto at full price and apply for a rebate instead of receiving full discounts upfront.  

What else to know: The Health Resources and Services Administration (HRSA) notified J&J it would be kicked out of the 340B Drug Pricing Program if it did not halt implementation.  

On Sept. 19, CHA sent a letter to U.S. Department of Health & Human Services (HHS) Secretary Xavier Becerra and HRSA Administrator Carole Johnson in support of the HRSA’s position.  

On Sept. 27, Reps. Doris Matsui (D-CA), Dusty Johnson (R-SD), Abigail Spanberger (D-VA), Tracey Mann (R-KS), Debbie Dingell (D-MI), and Rob Wittman (R-VA) sent a letter to HHS Secretary Becerra urging the department to take action against J&J if it did not abandon its proposal.  

The letter had 189 signatures, including 30 members of the California congressional delegation:  

  • Barragán (D-CA-44) 
  • Bera (D-CA-6)  
  • Brownley (D-CA-26)  
  • Carbajal (D-CA-24)  
  • Cárdenas (D-CA-29)  
  • Chu (D-CA-28)  
  • Costa (D-CA-21)  
  • DeSaulnier (D-CA-10)  
  • Eshoo (D-CA-16)  
  • Fong (R-CA-20)  
  • Garamendi (D-CA-8)  
  • Garcia, Mike (R-CA-27)  
  • Garcia, Robert (D-CA-42)  
  • Gomez, Jimmy (D-CA-34)   
  • Harder (D-CA-9)  
  • Kamlager-Dove (D-CA-37)  
  • Khanna (D-CA-17)  
  • Lee (D-CA-12)  
  • Lieu (D-CA-36)  
  • Lofgren (D-CA-18)  
  • Matsui (D-CA-7), lead author  
  • Napolitano (D-CA-31) 
  • Panetta (D-CA-19)  
  • Porter (D-CA-47) 
  • Schiff (D-CA-30)  
  • Takano (D-CA-39) 
  • Thompson (D-CA-4)  
  • Valadao (R-CA-22)  
  • Vargas (D-CA-52)  
  • Waters (D-CA-43)