On January 15, Lilly announced that it has extended its long-standing collection of claims data to all pharmacy purchases. Lilly's change is part of our commitment to ensuring that the reduced prices offered through the 340B program help vulnerable patients and are not exploited by hospitals and their for-profit partners. The collection of claims data is intended to stop the rampant fraud, waste, and abuse in the 340B program that is harming employers, state and federal governments, and patients.

Lilly's change is consistent with decades of agency guidance and rulings by two federal courts of appeals that manufacturers can lawfully collect this claims data to detect fraud, abuse, and unlawful duplicate discounts. The collection of this data imposes no new burdens on 340B entities because it relies on data that is readily available and that those entities routinely collect and submit to insurers.

So why is the American Hospital Association attacking this change, falsely claiming that it is illegal and burdensome? Unfortunately, it seems AHA is more committed to concealing the abuse in the 340B program because hospitals profit from it. The message to AHA is clear: Stop opposing common-sense policies that will improve compliance, transparency, and the long-term sustainability of the manufacturer-funded 340B program and start prioritizing the patients that hospitals are supposed to serve.

Read Lilly's full response here.

# # #