The Department of Health and Human Services this week in a strongly worded letter to Eli Lilly calls into question recent actions by the drug manufacturer to limit 340B hospital and community clinics’ use of 340B contract pharmacy arrangements. The HHS letter is in response to the drug manufacturer’s request for a pre-advisory enforcement action. 

The letter notes that the Health Resources and Services Administration has already directly expressed significant concerns regarding the drug manufacturer’s new policy and is continuing its review.

The HHS letter states that “Lilly cannot and should not view the absence of any questions from the government as somehow endorsing Lilly’s policy especially when this Department is leading government’s response to the COVID-19 pandemic.” 

In addition, HHS warns Eli Lilly that potential litigation is possible if the drug manufacturer “knowingly violates a material condition of the program that results in over-charges to grantees and contractors.”  

Related News Articles

Headline
A U.S. district court judge for the District of Columbia May 15 ruled the Department of Health and Human Services must preapprove the use of 340B “rebate…
Headline
The AHA May 14 filed an amicus brief in the U.S. District Court for the District of South Dakota in defense of the state’s 340B contract pharmacy law…
Headline
The AHA May 9 urged the Department of Health and Human Services to deny drug companies’ requests to approve their unlawful 340B rebate models. “The 340B…
Headline
The AHA May 8 filed an amicus brief in the U.S. District Court for the District of Nebraska in defense of the state’s 340B contract pharmacy law prohibiting…
Headline
The AHA May 1 expressed concerns to the Centers for Medicare & Medicaid Services about the payment process established under the Medicare Drug…
Headline
Senate Health, Education, Labor, and Pensions Committee Chairman Bill Cassidy, M.D., R-La., today released a report detailing findings from an investigation…