Catherine Hanaway
JEFFERSON CITY, Mo. – Missouri Attorney General Catherine Hanaway has issued a cease‑and‑desist letter to Eli Lilly and Company directing the drug manufacturer to stop imposing unlawful conditions on Missouri hospitals participating in the federal 340B Drug Pricing Program.
According to Hanaway’s office, Lilly’s policy requires hospitals to surrender “extensive, sensitive claims data” to access cheaper medication. The AG says that is “effectively cutting off critical discounts for facilities.”
“Big Pharma does not get to bully Missouri hospitals or hold prescription drug prices hostage,” Hanaway said. “Eli Lilly is abusing its market power to impose higher prescription prices in Missouri. These tactics fall hardest on rural communities that depend on the 340B program to keep clinics open and ensure patients receive the care they need.”
This year, Lilly implemented a policy change requiring 340B hospitals to submit detailed claims data for every dispensation of any Lilly product regardless of setting. When University of Missouri Health Care (MU Health Care) refused to comply, Lilly cut the system off from 340B pricing on July 2.
To avoid further harm to patients and ongoing financial losses, MU Health Care agreed to temporarily provide Lilly with the demanded data while reserving its rights.
Hanaway’s office says that by representing that covered entities may purchase drugs at federally required 340B prices while simultaneously denying those prices to Missouri hospitals that refuse to provide unnecessary claims data, Lilly misled consumers and used its market position to force unlawful conditions on Missouri healthcare providers. The cease-and-desist letter orders Lilly to immediately end its data submission requirement for 340B pricing in Missouri and to stop using claims data collected under the policy.
Failure to do so may result in an enforcement action under the Missouri Merchandising Practices Act.
Hanawya says Missouri’s rural hospitals rely heavily on the 340B program to keep emergency rooms open, maintain oncology and cancer treatment services, and offer low‑income and uninsured patients medication they otherwise could not afford. General Hanaway will continue to protect Missourians from Big Pharma when it threatens access to care with unlawfully inflated prescription drug costs.
Missourians who believe they have been affected by unfair pharmaceutical practices may file a complaint at ago.mo.gov.
