Johnson & Johnson’s new 340B claims-data policy, effective September 15, will require community health centers and other covered entities to submit extensive claims information whenever a discounted J&J product is dispensed. In an interview with Inside Health Policy, ACH CEO Amanda Pears Kelly warned that the requirement will impose significant administrative and financial burdens on health centers, potentially forcing them to reduce staff, scale back services or close sites in underserved communities.

“For years, pharmaceutical manufacturers have been chipping away at the 340B program through burdensome restrictions and requirements. Some companies had recognized that community health centers are not the problem with the program, so they excluded them from these damaging changes. Until now, this had included Johnson & Johnson, a longtime supporter of community health,” Pears Kelly said in a statement following the J&J’s notice of the new policy to covered entities earlier this month.

Pears Kelly emphasized that CHCs account for only 5.4% of 340B drug purchases and already operate under extensive accountability requirements. She called on Congress and federal regulators to intervene before other manufacturers follow J&J’s lead and urged policymakers to pursue a neutral, third-party claims clearinghouse to prevent duplicate discounts without jeopardizing the 340B savings that sustain the nation’s primary care safety net.

“I think where one goes, many tend to follow, and it’s not the kind of trailblazing we want to see,” Pears Kelly told Inside Health Policy.

Read the full article on Inside Health Policy