Episode 42: Lilly Move and What to Expect Next, State Activity and Premier Lawsuit Implications

In this episode, 340B Report Publisher and CEO Ted Slafsky joins Associate Editors and Senior Writers Shannon Young and Will Newton and National Correspondent Luke Zarzecki in breaking down the latest in 340B news, including: Eli Lilly’s move to cut off 340B pricing for certain hospitals; the Health Resources and Services Administration’s (HRSA) efforts to implement another rebate pilot, the government’s decision to not appeal a key hospital purchasing policy court ruling and recent 340B activity in the states. Key Topics Covered: Lilly Cuts Off Non-Compliant Hospital 340B Pricing Shannon and Ted discuss Lilly’s decision to end 340B pricing for certain hospitals that failed to comply with its 340B in-house pharmacy claims data requirements and how hospital trade groups responded to that move. Shannon notes that while 340B Health and the American Hospital Association urged HRSA to step in, the agency said it was still determining its “next steps.” Luke talks about possible actions states may take in response to Lilly’s actions and other drugmakers’ in-house claims data requirements. And Will notes that Vermont recently updated its state 340B law to protect covered entities in response to manufacturer in-house policies. HRSA Takes Another Step Towards Rebate Pilot Will breaks down new HRSA regulatory documents and what they mean about a potential future 340B rebate pilot. He notes that HRSA is attempting to avoid the missteps that led federal courts to block the agency’s original rebate pilot from taking effect. Will also explains that providers have disputed HRSA’s estimate on the administrative burden of a rebate pilot, quoting a former HRSA official who argued it was “mind-boggling” that the agency hadn’t changed its assessment. Key State and Court Actions Shannon breaks down HRSA’s decision not to appeal a Washington, D.C. federal district court’s ruling to strike down a controversial 13-year-old policy that restricted how certain 340B hospitals can purchase initial drug inventory. She notes that while hospitals celebrated the move and its implications, the agency could still pursue the issue through regulation—or more likely—federal guidance. Ted offers background on the group purchasing organization (GPO) prohibition and the significance of HRSA’s ruling. Will discusses a federal court ruling that allowed Washington state’s 340B contract pharmacy access law to take effect this month. He also provides an update on Illinois’ pair of 340B bills that are currently awaiting action from the state’s governor. July Panel on Key 340B Developments Join Verity Solutions for a panel discussion just ahead of the 340B Coalition Summer Conference. The complimentary event will take place July 13 from 8 to 9:15 a.m. ET at the Gaylord National Resort in National Harbor, Maryland. The event is open to all and separate from the Coalition Conference, so you need to register in advance. Learn more and register here. Subscribe & Stay Updated How to Follow Us and Learn More About This Episode’s Sponsor Stay tuned for more episodes every other week! 🎧Subscribe to Inside 340B Report on your favorite podcast platform or YouTube. Each episode is brought to you by one of our great Ultra Diamond sponsors, VytlOne. As the only independent provider of integrated pharmacy solutions, VytlOne leads the way in partnering with hospitals, health systems and health centers to unlock pharmacy revenue, strengthen local care and reinvest in communities. We are very grateful to VytlOne for its sponsorship. Subscribe to 340B Report with a Special Discount We’re offering a special discount for podcast listeners. 340B Report is the indispensable source for news and intelligence on the 340B program. First-time subscribers may subscribe now using coupon code PODCAST25. Not ready to subscribe? Sign up for a 15-day free trial.