IHA Daily Briefing: June 3

IHA Urges Gov. Pritzker to Sign HB 2371 as Eli Lilly Threatens 340B Program
A news article published today by Crain's Chicago Business highlights a recent move by pharmaceutical giant Eli Lilly to illegally deny drug discounts to 340B providers the company determines have failed to meet its new "claims-data-collection" documentation requirements by the end of next week. In response, IHA is urging Gov. JB Pritzker to take swift action on the hospital community's 340B protection legislation, House Bill 2371, which was passed on May 31 with bipartisan support.

Pharmaceutical manufacturer Eli Lilly on Monday sent a letter to Health Resources & Services Administration (HRSA) Administrator Thomas Engels citing concern that "hospitals are tapping multiple government discount programs." Claims data, Lilly said, would reveal whether providers are utilizing more than one discount program for identical drug purchases, according to Crain's report.

"Eli Lilly's demand is yet another desperate attempt by a pharmaceutical manufacturer to create costly, unnecessary and duplicative administrative hurdles for 340B providers, which diverts resources from patient care," said Paris Ervin, IHA Senior Director of Media and Public Affairs. "Conveniently, Eli Lilly failed to mention that HB 2371 requires 340B providers to maintain policies that prevent duplicate discounts-a practice they already follow."

"By advancing HB 2371, the General Assembly sent a clear and strong message that protecting the 340B program is a priority in Illinois. We urge Gov. Pritzker to sign House Bill 2371 as soon as it reaches his desk. Signing this bill into law will prevent pharmaceutical manufacturers from employing these types of extreme tactics, which are designed to circumvent their 340B responsibilities," Ervin said in a statement to Crain's.

For more information about how the 340B program helps Illinois hospitals provide lifesaving medications and needed healthcare to low-income and uninsured patients, click here.

Federal Legislation Introduced to Strengthen Rural Maternal Healthcare
U.S. Representative Darin LaHood has joined legislative colleagues in introducing the Rural Maternity Options for Medical Support (MOMS) Act of 2026 to strengthen and stabilize maternal healthcare in rural communities nationwide. The bill would ensure that beds used exclusively for labor and delivery are not counted toward the 25-bed limit required for Critical Access Hospital designation under Medicare. This change would help rural hospitals maintain labor and delivery services while preserving critical federal support.

A.J. Wilhelmi, Illinois Health and Hospital Association President and CEO, applauded Rep. LaHood's leadership and commitment to ensuring rural families have access to the high-quality maternity care they need close to home.

"This commonsense legislation represents an important step toward strengthening access to essential maternal health services, supporting critical access hospitals, and improving outcomes for mothers and babies. By helping preserve care in the communities where families live and work, this measure will make a meaningful difference for rural Illinois and rural communities across the country," said Wilhelmi.

The full bill text can be found here.

White House Issues Executive Order on Cybersecurity for AI
The White House issued an Executive Order (EO) yesterday addressing cybersecurity efforts related to artificial intelligence (AI). Under the order, federal agencies have 30 days to issue guidance and directives focused on safeguarding civilian government information systems; expanding or creating federal cybersecurity programs that strengthen AI-enabled defensive capabilities; and improving access to cybersecurity tools and services. This includes access to "covered frontier models" for federal, state and local agencies, as well as critical infrastructure operators such as rural hospitals, community banks and local utilities.

The EO also calls for federal officials to establish an AI cybersecurity clearinghouse to coordinate response to issues relating to software vulnerabilities, and to organize and prioritize remediation and distribution of vulnerability patches. In addition, the EO directs federal agencies to define criteria for classifying an AI model as a covered frontier model. The order also instructs the attorney general to prioritize criminal enforcement against those who use AI to illegally access or damage a computer system, or who utilize AI to support related criminal activity.

AHA Unveils Blueprint to Lower Healthcare Costs and Expand Access
The American Hospital Association (AHA) yesterday released a new report, "Making Health Care More Affordable: A Blueprint to Lower Costs, Improve Access and Enhance Quality." AHA said the report contains actionable and achievable strategies and solutions that are focused on improving the health of individuals and communities; transforming care delivery; reducing administrative waste in the system; lowering drug and device costs; and innovating to improve care outcomes. The report was produced with input gathered throughout the year from AHA members across the country.