J&J suing company over alleged abuse of its cost assistance program

Johnson & Johnson Health Care Systems is suing a New Jersey middleman to stop it from increasing drug costs for patients.

According to the lawsuit, the action is intended to stop SaveOnSP from conducting a scheme to pilfer tens of millions of dollars from the financial support program that J&J Healthcare Services provides for patients.

SaveOnSP, based in New York state, runs a co-pay adjustment strategy that intends to build on existing insurer-driven co-pay adjustment programs. The program is run in partnership with PBM Express Scripts and operated in conjunction with specialty pharmacy Accredo.

The scheme works by circumventing the constraints on the level of copay costs that payers can require patients to pay for prescription drugs. This will then inflate patients’ copay costs to increase the funds extracted from J&J’s patient assistance program, called Janssen CarePath. Once drugs are included in the SaveOnSP Program, the drug’s co-pay is also…
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