Spanberger statement suspending Johnson & Johnson's plan to stop direct drug rebates to hospitals in underserved communities

Congressman: “This blatant violation of the law would have harmed patients served by hospitals who rely on 340B to afford their prescription medications.”

WASHINGTON, D.C – U.S. Rep. Abigail Spanberger released the following statement today after Johnson & Johnson (J&J) suspended the company's plan to downgrade two life-saving drugs currently available at a direct discount under the 340B Drug Pricing Program to convert to an approved discount model.

“The 340B program – created by Congress to care for vulnerable patients – plays a critical role in reducing prescription drug costs for safety net and rural health care providers. Unfortunately, Johnson & Johnson attempted to overturn decades of law by eliminating direct rebates to healthcare providers for two life-saving prescription drugs.

“This blatant violation of the law would have harmed patients served by providers who rely on the 340B program to afford certain prescription drugs.” I led a bipartisan group of 188 of my colleagues last week in support committed to these providers and the communities they serve and called on the Biden administration to take all available enforcement actions should J&J implement its plan. Today, I was pleased that the company made the wise decision to suspend its rebate proposal and continue to provide direct rebates – allowing the 340B program to continue serving Virginians and Americans across our country as originally intended.”

BACKGROUND

On Friday, Spanberger, leading a group of 188 Democrats and Republicans, called on the U.S. Department of Health and Human Services (HHS) to act quickly to prevent significant financial challenges and administrative burdens on safety-net hospitals and patients if J&J goes ahead with its plan to comply to violate the 340B regulation and switch to a discount model.

The 340B Drug Pricing Program was passed by Congress in 1992 with bipartisan support and is overseen by HHS. The program requires pharmaceutical companies to provide discounts on their medications to safety net and rural health care providers in exchange for their medications being covered by Medicaid.

The program is proven to protect low-income patients who live in underserved communities or suffer from serious chronic illnesses from the threat of skyrocketing prices for the medications they rely on most.

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