Eli Lilly, J&J Sue US Over Rejected Changes To Drug Discounting Program | Global News Avenue

Eli Lilly and Company (Li Lai) became the second drugmaker to sue the U.S. government in recent days after the government rejected their proposed changes to a program that would have required the sale of discounted drugs to certain medical institutions.

Eli Lilly joins Johnson & Johnson (Johnson & Johnson), earlier this week on U.S. Department of Health and Human Services (HHS) and the Health Resources and Services Administration (HRSA), which oversees the 340B rebate program.

What is the 340B program?

The program, created in 1992, requires drug manufacturers to sell discounted drugs to hospitals and clinics that serve low-income and uninsured patients to ensure they have access to various medical facilities.

Drug companies argue, however, that the program has grown large enough that hospitals can circumvent the program’s rules without detection, obtain discounted drugs and charge higher prices to patients or insurers to make profits.

Why Eli Lilly and Johnson & Johnson say it’s time for change

Both Eli Lilly and Johnson & Johnson have proposed changes to the program in which they would sell the drugs to medical providers at full price and then offer rebates.

HRSA rejected the changes proposed by the drugmakers, and the companies have now sued, saying their plans serve the original purpose of the program while reducing the likelihood of rule violations. The agency has notified Johnson & Johnson that it would face fines if it implements the unapproved plan, and the drugmaker said in September it would work with HRSA to resolve any issues.

Eli Lilly said the agency “does not have the authority to arbitrarily reject this model,” while Johnson & Johnson said it is “taking action to bring much-needed transparency that will be critical to helping the 340B program achieve its original purpose of supporting vulnerable patients’ access to prescription drugs.” important.”

HRSA did not immediately respond Investment Encyclopedia Request to comment.