Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
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Federal Policy·June 2, 2026

Lilly Threatens to End 340B Discounts for Hospitals That Don't Submit Claims Data

Eli Lilly issued a five-day ultimatum to hospitals participating in the 340B drug discount program, demanding they submit claims data or lose access to discounted pricing. The move escalates pharmaceutical manufacturers' ongoing efforts to restrict 340B eligibility and impose new compliance requirements on covered entities. Hospitals that fail to comply by the deadline will see their 340B discounts suspended. This follows similar manufacturer-led restrictions that have drawn pushback from HRSA and advocacy groups representing safety-net providers.

Why it matters for managed care

Medicaid managed care organizations contracting with 340B hospitals may face increased pharmacy costs if facilities lose discount eligibility and shift more expensive claims to health plans or seek higher reimbursement rates to offset lost savings.

Pharmacy · Managed Care

Read the full article at statnews.com

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