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Johnson & Johnson is now requiring hospitals and clinics to submit detailed claims data for every drug dispensed under the 340B federal discount program — or risk losing access to savings of 20–50%. J&J joins Eli Lilly and Novo Nordisk in imposing stricter reporting rules, citing fraud prevention. Hospitals are pushing back hard, arguing drugmakers are using compliance demands as cover to dodge legally owed discounts.
Johnson & Johnson has rolled out a new policy requiring all 340B-eligible providers — hospitals, community health centers, and clinics — to submit pharmacy or medical claims data for each J&J drug dispensed under the federal 340B discount program, effective September 15, 2026. Providers who don't comply risk losing access to the program's significant drug discounts entirely. J&J says the move is necessary to prevent duplicate discounts and illegal transactions, but hospitals aren't buying it.
The hospital industry argues that drugmakers lack the statutory authority to impose such requirements and are using them as a pretext to avoid paying out discounts they're legally obligated to provide. The Health Resources and Services Administration (HRSA), which oversees 340B, says it is reviewing these policies. J&J has also separately limited 340B pricing to just one contract pharmacy within 40 miles of a provider's parent site.
By the Numbers:
Why it matters: The 340B program is a financial lifeline for safety-net hospitals and clinics serving low-income patients. As drugmakers ratchet up reporting demands — and the program balloons past $100 billion — the battle over who controls 340B's guardrails is intensifying, with real consequences for providers and the patients they serve.