Eli Lilly stops giving 340B discounts to contract pharmacies

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Seven health center and drug store groups sent out a letter to HHS Secretary Alex Azar Aug. 26 advising him to ensure drugmakers follow 340B rules.

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Eli Lilly said it will only give 340B discount rates to covered entities and their child websites, not to agreement drug stores, as of Sept. 1, as a safety measure to prevent replicate discounts that could be used at the pharmacies. Covered entities that do not have an internal pharmacy can contact Eli Lilly regarding an exception, the company stated..

The 340B program was created in 1992 and requires drugmakers to provide discounts on all outpatient drugs to health centers and centers that serve indigent populations. About 2,500 hospitals around the nation take part in the program..

Maia Anderson –
Thursday, September 3rd, 2020

AstraZeneca has also said it would stop offering discounts to health centers that ship drugs to contract pharmacies rather of giving them in home..

In the last few months, at least five drugmakers have informed medical facilities they will be limiting 340B discount rates, stating theyre doing so to prevent paying replicate discount rates..

Eli Lilly informed medical facilities Sept. 1 that it will no longer provide 340B drug discounts to healthcare facilities that deliver the drugs to 340B agreement pharmacies rather of dispensing them in house, according to files gotten by 340B Report, a news website that focuses on the 340B program.

” Lilly is committed to the 340B program and the patients it was developed to serve, however the program needs reform to much better define who is entitled to discount rates, figure out health center eligibility and clarify what function contract pharmacies should appropriately play. Although we are taking individual actions as a business to make this take place, all stakeholders in the system need to come together to make sustainable reform possible,” Eli Lilly told 340B Report..

” Lilly shares the goal of making sure that 340B clients directly gain from the substantial 340B discounts on Lilly insulins,” the drugmaker said..

The drugmaker provided an exception for insulin, saying it will still provide discount rates on insulin to contract drug stores as long as the pharmacy does not change the rate. Eli Lilly stated the insulin exception remains in line with an executive order signed by President Donald Trump July 24, entitled “Access to Affordable Life-Saving Medications.”.