Association Responds to Eli Lilly’s Targeted 340B Pricing Suspension

In a June 18 letter, America's Essential Hospitals calls on Health Resources and Services Administrator Thomas Engels to restore 340B Drug Pricing Program access for all covered entities, following Eli Lilly's suspension of access for hospitals that refused to comply with the manufacturer's in-house pharmacy claims reporting requirements.

Eli Lilly's decision to terminate 340B pricing applies only to a group of hospitals that, along with Administrator Engels, received a June 1 letter from the manufacturer threatening suspension.

America's Essential Hospitals' letter to Engels details how Eli Lilly lacks the statutory justification or HRSA approval to unilaterally suspend access to 340B pricing. The association further notes that Lilly lacks the authority to demand claims information from in-house pharmacies without HRSA approval, and that these demands could functionally increase the cost of 340B drugs above the statutory ceiling price. America's Essential Hospitals urges HRSA to level civil monetary penalties against Lilly and use all other available tools to "expeditiously restore access to 340B pricing."

Beth Feldpush, DrPH, senior vice president of advocacy and policy for America's Essential Hospitals, told Modern Healthcare that, "pharmaceutical manufacturers are trying to force hospitals to hand over patients' personal information, and it's just the latest scam by greedy drug manufacturers to line their own pockets at the expense of critical patient services." As many as nine other pharmaceutical manufacturers have proposed similar schemes to Eli Lilly and threaten to withhold access to lawful 340B prices unless their demands are met.

Contact Director of Policy Rob Nelb, MPH, at [email protected] or 202.585.0127 with questions.