Missouri AG Warns Eli Lilly to Stop Data Demands on Hospitals Seeking 340B Drug Discounts

STAT News · 2026-10-27
Missouri AG Warns Eli Lilly to Stop Data Demands on Hospitals Seeking 340B Drug Discounts

Missouri Attorney General Andrew Bailey has issued a warning to Eli Lilly, instructing the pharmaceutical giant to cease requiring hospitals to submit detailed claims data as a condition for accessing discounted medications under the federal 340B drug pricing program. The move signals growing state-level resistance against drugmakers' efforts to impose restrictions on the program, which requires manufacturers to offer outpatient drugs at reduced prices to eligible safety-net hospitals and clinics. Bailey's office argues that Lilly's data demands exceed the program's statutory requirements and could undermine the intent of 340B to stretch scarce federal resources. The dispute centers on Lilly's policy requiring covered entities to provide pharmacy claims data to verify compliance, a practice critics say creates administrative burdens and may deter participation. This development follows similar actions in other states, reflecting a broader clash between pharmaceutical companies and health care providers over 340B program oversight. As legal and regulatory battles intensify, the outcome could shape how drugmakers interact with hospitals serving vulnerable populations nationwide.