Johnson & Johnson seeks new guidelines for hospital payments under the 340B drug rebate program for its key blood thinners and arthritis drugs

On Friday, Johnson & Johnson (NYSE:JNJ) announced that it would implement significant changes to 340B pricing for its popular drugs Stelara and Xarelto.

Stelara (ustekinumab) is indicated for moderate to severe psoriasis, active psoriatic arthritis, Crohn's disease and ulcerative colitis.

Xarelto (rivaroxaban) is a blood thinner used to treat and prevent blood clots associated with certain heart and blood vessel diseases.

Also read: Medicare costs for Johnson & Johnson's psoriasis drug Stelara double when purchased at the pharmacy.

Starting October 15, disproportionate share hospitals (DSHs) participating in the 340B Drug Pricing Program will be required to purchase these drugs at full price and report the data to Johnson & Johnson.

Once the drug's 340B status is confirmed, hospitals will receive reimbursement equal to the 340B rebate.

The pharmaceutical giant said the policy will come into effect in about two months, on October 15, and that the company will provide an additional grace period for submitting rebate requests.

Companies covered by DSH have over six months to adapt to the new directive.

In a statement, the AHA said it had informed Johnson & Johnson that its rebate model was not consistent with Act 340B and that the Secretary of Health and Human Services had not approved the model.

HRSA also informed AHA that it would take appropriate action if necessary.

The drugmaker said the program requires covered companies to submit reimbursement claim data within 45 days of dispensing the drug, but a grace period allows claims to be submitted outside the 45-day window until March 10, 2025.

“We believe this update will significantly improve the integrity of the program while allowing affected companies to receive the 340B price for eligible 340B sales,” Johnson & Johnson said in its statement.

Johnson & Johnson's Imbruvica is among the drugs that are part of the first round of drug price negotiations.

Price promotion: JNJ shares were up 0.49% to $164.93 at last check on Monday.

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This article Johnson & Johnson Seeks New Hospital Payment Policy Under 340B Drug Rebate Program For Its Key Blood Thinners And Arthritis Drugs originally appeared on Benzinga.com

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