Eli Lilly stops 340B discounts for dozens of hospitals that did not submit claims data

Eli Lilly has begun removing the federally mandated 340B price discounts for a few dozen hospitals that have not provided the required claims data. The company said the step follows a warning it issued earlier this month and is intended to prevent duplicate discounts.

Lilly’s policy, announced in January, requires participating hospitals to submit comprehensive claims information in exchange for the discount. The firm argues that without this data it cannot verify that the discounts are not being duplicated.

Hospital trade groups say the move is unlawful and could create financial strain for the affected facilities. They are urging Congress to intervene and protect the hospitals’ access to discounted drugs.