Eli Lilly has followed through on its threat to cut 340B drug discounts for a handful of hospitals. The company eliminated the mandated price breaks after the facilities failed to submit claims data, escalating a long-simmering dispute over program transparency.
The 340B program requires drugmakers to sell outpatient medications at steep discounts to hospitals serving low-income and uninsured patients. Lilly and other manufacturers have argued that some hospitals are profiting from the discounts without passing savings to patients, fueling demands for stricter oversight.
A few dozen hospitals lost access to the discounts, according to STAT News. The company had previously warned it would take this step if the institutions did not comply with its data-sharing requests. Exact financial impact figures were not disclosed.
The move could deepen tensions between drugmakers and safety-net hospitals, which rely on 340B savings to fund charity care. Other pharmaceutical firms are watching closely, as similar data demands have been issued industry-wide. The Biden administration has also proposed new rules to tighten program accountability.
Patient advocates warn that cutting discounts may ultimately reduce access to care for vulnerable populations. Hospitals argue the data requests are burdensome and an overreach by drug companies seeking to limit the program's reach.