Eli Lilly Cuts 340B Discounts to Noncompliant Hospitals
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- Eli Lilly has begun eliminating mandated 340B price breaks to a few dozen hospitals that participate in the federal drug discount program after failing to receive comprehensive claims data from them.
- Lilly announced the policy in January, effective February 1, and said the goal is to reduce what it characterizes as duplicate discounts paid to hospitals.
- Lilly reported that more than 2,300 hospitals complied with its data demand, but up to 1,000 had not, and the company was pressing roughly 50 larger hospital systems to provide data after follow-up letters.
- Hospital trade groups argue Lilly's move is unlawful and are pushing for Congressional intervention to block the policy.
Why it matters: Lilly's enforcement targets safety-net hospitals that rely on 340B savings to fund care for low-income patients, and roughly 50 large systems are now in the crosshairs. If hospital groups succeed in getting Congress to act, the move could be reversed; if they don't, other drugmakers may copy Lilly's playbook and demand claims data as a condition of participation.
