Lilly Sues HHS for Ending Planned 340B Drug Program Cash Rebates

US health officials acted contrary to law by declaring unlawful Eli Lilly & Co.'s proposed new payment model for steeply discounted medications it sells to certain health-care providers, the drugmaker said in a new complaint.

There’s nothing in the 340B statute that precludes Lilly from using a “cash replenishment” model, rather than a “product replenishment” model when providing drugs to entities that care for low-income Americans, it said. Lilly filed the suit Thursday against the US Department of Health and Human Services, Secretary Xavier Becerra, the Health Resources and Services Administration, and HRSA Administrator Carole Johnson in the US District ...