This week, ASHP urged the Health Resources and Services Administration (HRSA) to direct Eli Lilly to end its new policy requiring hospitals and health systems that participate in the 340B Drug Pricing Program to submit comprehensive claims-level data before receiving discounted medications.
In its letter to HRSA Administrator Thomas Engels, ASHP says that Lilly’s policy conflicts with the 340B statute and increases administrative and financial burdens on safety-net providers. ASHP noted that if HRSA fails to intervene, manufacturers will continue unilaterally imposing conditions on the 340B program — to the detriment of patients and providers.
ASHP also called for HRSA to maintain prospective, upfront 340B discounts rather than revive the proposed 340B rebate pilot program. ASHP warned that manufacturers are improperly using the Inflation Reduction Act’s negotiated drug pricing framework to justify rebates, despite existing legal authority for prospective pricing.
“The 340B program is a critical lifeline for providers and their patients, offering the ability to provide valuable patient care services that would otherwise be financially out of reach,” said Tom Kraus, ASHP vice president of government relations. “Manufacturers cannot be allowed to undermine the program and effectively raise drug costs for covered entities, thereby diverting scarce resources away from patient care.”
