Eli Lilly moves to deny 340B pricing over data requirements; AHA urges federal action
Eli Lilly said June 1 it will deny 340B Drug Pricing Program discounts to providers that do not meet its documentation requirements by next week.
In a statement shared with media last night, AHA President and CEO Rick Pollack said, “Eli Lilly will soon take the extraordinary step of denying 340B discounts under its unlawful claims data policy. This decision will undoubtedly harm America’s most vulnerable patients and communities, forcing hospitals to divert resources away from care and towards onerous and expensive administrative burdens.
“Make no mistake: Lilly did not, as it states, take this step ‘reluctantly’ or work ‘tirelessly’ to resolve ‘legitimate concerns’ about its unlawful policy. After all, just two weeks ago, AHA sent a letter to Lilly offering to work together in good faith on a common solution. Lilly never responded. Instead, as one media outlet explained, Lilly offered advance notice to the press on the condition that it not be provided to hospitals in advance. Sadly, Lilly seems more concerned with shaping the public narrative than pursuing sound public policy that puts the needs of patients first.
“It is time for the Department of Health and Human Services to act. For months, HHS has done nothing as Lilly threatened to take these illegal actions. With today’s announcement, HHS can no longer sit on the sidelines. This Administration has repeatedly shown that it is willing to be tough on drug companies to protect America’s patients from profiteering and price gouging. On behalf of the hospitals and health systems that serve America’s rural and most underserved communities, we ask HHS to show that same toughness here and prevent Lilly from moving forward with this illegal and harmful policy.”
The AHA has consistently raised concerns to Eli Lilly and the Health Resources and Services Administration, which oversees the 340B program, about these onerous claims-data policies. At least six other drug companies also have announced data policies that require 340B hospitals to provide onerous amounts of pharmacy and medical claims data in exchange for continued access to 340B pricing.