AHF Hails HRSA Stance on J&J’s Illegal Attack on 340B Program

AHF Hails HRSA Stance on J&J’s Illegal Attack on 340B Program

AIDS Healthcare Foundation (AHF) welcomes the strong stand the U.S. Health Resources and Services Administration (HRSA) took today against Johnson & Johnson’s illegal actions that would destroy the 340B Drug Pricing Program. See HRSA Response to J&J's September 19, 2024 Letter

J&J’s illegal scheme will deny required 340B discounts to eligible safety net covered entities and instead provide rebates if and when it chooses. J&J’s scheme may or may not reimburse providers at a later date, cheating safety net providers, making every claim subject to dispute and protracted payment. J&J is violating the law and AHF is pleased that HRSA has swiftly responded.

Drug companies who want the lucrative opportunity to sell their medications to the multi-billion-dollar Medicaid and Medicare drug programs, by law, must offer discounts to eligible nonprofit healthcare providers, such as nonprofit rural hospitals, HIV and black lung disease clinics. If J&J doesn’t want to comply with the law, HRSA is saying that it will block it from selling its products to the taxpayer supported Medicaid and Medicare drug markets. J&J can’t unilaterally rewrite healthcare law.

AHF calls on the U.S. Congress to take swift action to explicitly outlaw this blatant illegal action which would blow a hole in the U.S. healthcare safety net.

AIDS Healthcare Foundation(AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 2.1 million individuals across 47 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, and follow us on Instagram, Twitter, and TikTok.

Ged Kenslea, Sr. Director, Communications, AHF
1.323.791.5526 mobile
ged.kenslea@ahf.org

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