Hospital Group Seeks to Intervene in Lawsuit Against Lilly’s 340B Rebate Model

340B Health, along with two member hospitals, filed a motion to intervene in Johnson & Johnson's lawsuit against the government over 340B rebate plans7.

The intervention aims to defend the federal government's authority to block pharmaceutical companies from imposing rebate models on 340B hospitals7.

Eli Lilly sued the U.S. Department of Health and Human Services (HHS) and the Health Resources and Services Administration (HRSA) to implement its "cash replenishment model" for 340B drugs13.

Lilly's proposed model would apply to all 340B-covered entities and all of the manufacturer's drugs, replacing upfront discounts with a rebate process14.

Hospital groups argue that the rebate model violates the 340B statute, creates additional administrative burdens, and threatens some hospitals' financial stability47.

HRSA has stated that drug rebates are illegal under the 340B program and warned manufacturers of potential fines or loss of eligibility for Medicaid or Medicare Part B participation4.

Multiple pharmaceutical companies, including Johnson & Johnson, Sanofi, and Bristol Myers Squibb, have filed similar lawsuits challenging HRSA's position on rebate models4.

The ongoing legal battle reflects rising tensions among drugmakers, hospitals, and HRSA over the future of the 340B Drug Pricing Program4.

Sources:

1. https://www.aamc.org/advocacy-policy/washington-highlights/eli-lilly-sues-hrsa-over-340b-rebate-model

3. https://340breport.com/lilly-sues-hhs-hrsa-to-implement-expansive-340b-rebate-for-all-products-and-covered-entity-types/

4. https://www.beckershospitalreview.com/pharmacy/drugmakers-340b-rebate-fight-explained.html

7. https://www.340bhealth.org/newsroom/340b-health-files-motion-to-intervene-in-jj-rebate-lawsuit/