For many hospitals and safety-net providers, 340B savings are a financial lifeline that helps fund care for low-income and uninsured patients. That lifeline is facing new pressure as Eli Lilly (Lilly) becomes the first manufacturer to threaten suspension of 340B pricing for covered entities that do not submit in-house pharmacy claims data, placing critical savings and patient services at risk. As we discussed in our prior client alert, “Another Setback for 340B Pharmacies”, this development is the latest in a growing series of efforts that continue to erode the protections and financial benefits upon which many 340B hospitals rely.
On June 1, 2026, Lilly provided notice to approximately 50 hospitals requiring them to submit detailed prescription data from their in-house pharmacies within five business days or risk losing access to 340B drug discounts. While hospital groups have firmly pushed back, the implications of Lilly’s refusal to honor 340B pricing may be far reaching and have devastating consequences on hospitals across the nation.
Perhaps most concerning is that Lilly is not alone. At least nine other manufacturers, including AstraZeneca, Novo Nordisk, and Amgen, have implemented similar data reporting requirements over the past year, fueling concerns that these measures may signal a broader effort to restrict access to 340B benefits. Although Health Resources and Services Administration (HRSA) has indicated that it is reviewing these policies, it has not yet taken action. Should other manufacturers adopt a similar stance, 340B hospitals may face growing administrative burdens and increasing threats to much needed savings that support critical patient care services, with potentially significant financial and operational consequences to their organizations.
If your organization participates in the 340B program, now is the time to review your data reporting practices and understand your options. Given how quickly this landscape is changing, staying informed and working with your team to prepare a response plan can help you avoid losing access to important cost savings.
Should you have any questions, please contact the authors, the Garfunkel Wild attorney with whom you regularly work, or contact us at [email protected].