Eli Lilly Withholds 340B Discounts from Hospitals Over Claims Data Dispute
Eli Lilly has begun withholding 340B drug discounts from hospitals that decline to submit claims data, following through on earlier warnings. Hospital groups are challenging the policy as unlawful, contending the manufacturer lacks legal authority to impose compliance requirements on a federal drug discount program. The dispute centers on whether pharmaceutical companies can unilaterally condition participation in 340B on data-sharing arrangements not specified in the statute. This follows a pattern of manufacturer pushback against 340B program growth, particularly involving contract pharmacy arrangements.
Medicaid managed care organizations contract with 340B-participating hospitals and FQHCs for pharmacy services, and disruptions to 340B pricing could increase drug costs for safety-net providers serving dual-eligible and Medicaid populations.
Pharmacy · Managed Care
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