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Johnson & Johnson's New 340B Drug Discount Strategy Sparks Controversy
Hospitals and Federal Agencies Push Back Against J&J's Shift to Rebate Model for 340B Drugs
Johnson & Johnson HQ

Johnson & Johnson (J&J) is set to change how it provides discounts on 340B-eligible drugs, replacing upfront discounts with a rebate system starting October 15, 2024. This shift, affecting drugs like Stelara and Xarelto, has drawn sharp criticism from hospitals and the Health Resources and Services Administration (HRSA), which argue the move violates federal law and could financially burden hospitals serving low-income communities. The policy has escalated tensions in the long-standing conflict between pharmaceutical companies and healthcare providers over the 340B program's implementation.