Under pressure from the Biden administration, Johnson & Johnson has decided not to alter payment methods for some hospitals that participate in a federal drug discount program.
The move came after the U.S. Health and Resources Administration last week threatened the health care giant with sanctions if it proceeded with plans to issue rebates for two widely prescribed medicines instead of offering discounted prices under the 340B program.
Last month, J&J announced it would change payment terms for its Xarelto blood thinner and the Stelara plaque psoriasis treatment through the discount program, which was created to help hospitals and clinics care for low-income and rural patients. To ensure the program achieves this goal, drug companies that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics.
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