STAT+: Eli Lilly ends 340B drug discounts to some hospitals for failing to provide claims data

STAT PlusPharmalot Eli Lilly ends 340B drug discounts to some hospitals for failing to provide claims data Hospital trade groups says the data demand will cause financial stress Manage alerts for this article Email this article Share this article By Ed Silverman and Tara BannowJune 18, 2026 Ed Silverman[email protected]Ed’s stories explore prescription drug pricing, affordability and access, as well issues surrounding patents, litigation, and legislation. He is also the author of the morning Pharmalittle newsletter and the afternoon Pharmalot newsletter.Tara Bannow[email protected]Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. Making good on its threat, Eli Lilly has begun eliminating mandated price breaks to a few dozen hospitals that participate in a federal drug discount program after failing to receive comprehensive claims data. The move comes after the company warned earlier this month it would take such a step as part of a policy announced in January in order to reduce what it calls duplicate discounts paid to the hospitals. Trade groups representing hospitals, however, argue the move is unlawful and want Congress to intervene.Advertisement At the time, Lilly maintained that more than 2,300 hospitals had complied with its demand, but some larger hospitals systems around the U.S. refused to do so, despite recent follow-up letters regarding the policy, which went into effect Feb. 1. Up to 1,000 had so far not complied, and Lilly indicated it was pressing about 50 larger hospitals to provide data. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In biotechnology, drug pricing, hospitals, Pharmaceuticals, Policy, STAT+ Submit a correction requestReprints Ed Silverman Pharmalot Columnist, Senior Writer Ed’s stories explore prescription drug pricing, affordability and access, as well issues surrounding patents, litigation, and legislation. He is also the author of the morning Pharmalittle newsletter and the afternoon Pharmalot newsletter. Tara Bannow Hospitals and Insurance Reporter Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. Newsletter From the lab to the medicine chest, these are the must-read drug industry updates of the day Recommended Pharmalot June 18, 2026 STAT Plus: Pharmalittle: We’re reading about an FDA review of Moderna’s flu shot, J&J’s focus on cancer, and more Pharmalot June 17, 2026 STAT Plus: Advocacy groups petition FDA to withdraw approval of ‘unsafe’ use of antibiotics given to livestock Advertisement Pharmalot June 17, 2026 STAT Plus: Pharmalittle: We’re reading about hackers extorting Novo, an FDA about-face, and more Pharmalot June 16, 2026 STAT Plus: Pharmalittle: We’re reading about Medicare and obesity drugs, Germany’s pricing plans, and more Pharmalot June 15, 2026 STAT Plus: FDA approves Colorado’s plan to import cheaper drugs from Canada Subscriber Picks