MATSUI DEMANDS HHS STOP ELI LILLY’S ILLEGAL RESTRICTIONS ON DRUG PRICING DISCOUNTS

WASHINGTON, D.C. - Today, Congresswoman Doris Matsui (D-CA) and Congressman Jack Bergman (R-MI) led a bipartisan group of 72 total members of Congress in demanding that the Department of Health and Human Services (HHS) and the Health Resources and Services Administration (HRSA) take immediate action to stop Eli Lilly and Company from unlawfully conditioning access to 340B drug discounts.

"We write to express our serious concern regarding the recent action by Eli Lilly and Company (Lilly) terminating 340B pricing for covered entities' (CE) that do not comply with its in-house claims data policy," wrote the lawmakers.

"Congress established 340B to enable safety-net providers to stretch scarce federal resources, expand access to care, and furnish more comprehensive services to vulnerable patients. Congress did not authorize manufacturers to unilaterally impose additional reporting mandates or data-sharing requirements as a prerequisite for obtaining those discounts."

"Lilly and a growing number of other pharmaceutical companies have announced policies that threaten to bar access to 340B discount pricing for their drugs unless the CE shares claims-level data from in-house pharmacies, including from mixed-use pharmacies for drugs administered in the hospital to outpatients… [which] extend beyond the statutory framework established by Congress."

"We respectfully request that HRSA and HHS take immediate action to reinstate covered entities' uninterrupted access to 340B pricing for eligible drugs and use all available enforcement authorities to ensure manufacturers comply with their obligations under Section 340B of the Public Health Service Act," the lawmakers conclude. "The 340B program remains a critical tool for supporting hospitals, health centers, and other providers that serve vulnerable populations."

Read the full letter HERE.

This is another action where Congresswoman Matsui has used her leadership to lower healthcare and prescription drug costs for seniors and families, from helping pass the Affordable Care Act to supporting Medicare drug pricing negotiation. She has also led bipartisan efforts to improve the 340B drug pricing program, including introducing the 340B PATIENTS Act to stop drug manufacturers from restricting access to 340B pricing and undermining safety-net care.

BACKGROUND

The 340B Drug Pricing Program was enacted by Congress in 1992 with bipartisan support and is overseen by the Health Resources and Services Administration (HRSA) under the Department of Health and Human Services (HHS). The program requires that pharmaceutical companies give safety net and rural healthcare providers discounts on their drugs, in exchange for having their drugs covered by Medicaid.

The program has a demonstrated record of protecting patients who are low-income, live in underserved communities, or suffer from serious chronic illnesses from the threat of skyrocketing prices for the drugs they depend on the most.