Episode 3: The 340B Rebate Saga: Fallout and Potential Litigation

Shannon Young, Will Newton and Bella Czajkowski, explore the biggest developments in the 340B program, focusing on the latest surrounding Johnson & Johnson’s (J&J) rebate proposal, including the potential for litigation. They also recap key discussions from a recent healthcare summit in New York City and offer a preview of what they’ll be keeping their eyes on ahead of the upcoming November elections.

Key Topics Covered

• 340B Report Correspondent Bella Czajkowski attended the Association for Value-Based Cancer Care Summit in New York, where she heard from influential voices on the future of healthcare policy, including 340B. Among the most notable speakers was Joe Grogan, a former Trump administration official, who called for reform to the 340B program—potentially including a rebate model instead of upfront discounts. He cited concerns with possible diversion and the risk of duplicate discounts. Grogan also forecasted the future of the Inflation Reduction Act (IRA).

• The team discusses 340B stakeholders’ reactions to J&J’s proposed 340B rebate model. The drugmaker has abandoned course following HRSA pushback, but as Bella points out, some stakeholders say litigation may be on the horizon. Shannon highlights a recent op-ed from Maureen Testoni, in which the president and CEO of 340B Health warned covered entities to stay alert on the issue. And she notes how drug industry trade groups have continued to push for a rebate system.

• Will discusses how the IRA’s Medicare drug price negotiations could interact with the 340B program, including potentially reducing 340B savings. He emphasizes how inaction from federal regulators on the overlap between 340B and the IRA has created looming uncertainty for providers and manufacturers navigating the two drug pricing programs.

• As the election season heats up, Shannon, Will and Bella preview what they expect to see when it comes to 340B-related lobbying efforts, and how the program could become a household name as it draws more attention at the state and national levels. 

What’s Next for Inside 340B Report

In future episodes, the team will provide an inside look at the topics and issues impacting the stakeholders in the 340B drug discount program. Listen to fascinating conversations between 340B Report editors and reporters on what they are covering and why it is important. 

Stay tuned for more episodes biweekly! 🎧 Subscribe to Inside 340B Report on your favorite podcast platform and follow us on YouTube for video discussions.

Special thanks to 340B Report Ultra Diamond sponsors who made this episode possible including: AIDS Healthcare Foundation, The Alinea Group, Avita Care Solutions, Maxor, RxParadigm, RxStrategies and Verity Solutions.

Thank you for joining us on this journey. We look forward to bringing you valuable insights and discussions on the 340B program. For more information, visit 340BReport.com.

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