J&J sues government agency over payment terms for 340B hospitals, STAT says

Johnson & Johnson has filed a lawsuit against the U.S. Health Resources and Services Administration over a closely watched dispute focusing on payment methods for some hospitals that participate in a federal drug discount program, STAT’s Ed Silverman reports. The company argued in the lawsuit that the agency wrongfully interpreted a federal law concerning the use of rebates in the 340B Drug Pricing Program, which was created to help hospitals and clinics care for low-income and rural patients. The agency said that J&J’s recent moves to change payment terms for its Xarelto blood thinner and the Stelara plaque psoriasis treatment are unlawful as they would require the hospitals to purchase the medicines at prices exceeding what the discount program permits, Silverman writes.