Johnson & Johnson has sued a U.S. government agency over a closely watched dispute focusing on payment methods for some hospitals that participate in a federal drug discount program.
In its lawsuit, the company argued the U.S. Health Resources and Services Administration has 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. J&J recently sought to change payment terms for its Xarelto blood thinner and the Stelara plaque psoriasis treatment.
The agency, however, had maintained such a move, which J&J planned to put into effect last month, is unlawful because it would require the hospitals to purchase the medicines at prices exceeding what the discount program permits. The HRSA also insisted that prior approval by the Department of Health and Human Services would be required before such a move can proceed.
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