Missouri AG Orders Eli Lilly to Stop Cutting Off Rural Hospitals From Drug Discounts

Missouri Attorney General Catherine Hanaway sent a cease-and-desist letter to Eli Lilly and Company on Monday. The order demands the pharmaceutical firm stop imposing specific data collection rules on state hospitals that use the federal 340B Drug Pricing Program.

The conflict centers on a policy Eli Lilly implemented in 2026. The new rule requires 340B participating hospitals to submit detailed claims data for every single dispensation of Lilly products. This requirement applies regardless of where the medication is prescribed or administered.

The University of Missouri Health Care initially refused to comply with the new data submission mandate. Hanaway alleges that in response, Eli Lilly cut the university system off from 340B pricing in early July. This action forced the hospital system to pay higher prices for prescriptions, a burden Hanaway says fell hardest on rural communities.

To prevent further disruption to patient care, MU Health Care agreed to temporarily provide the requested data. Hanaway stated that this compliance imposes a heavy and unnecessary financial cost on the health system. She argued that the company’s tactics violate both federal intent and Missouri law by abusing market power to hold prescription drug prices hostage.

Hanaway’s office is now asking Missourians who believe they have been impacted by these pricing practices to file a complaint at ago.mo.gov. Eli Lilly and Company was contacted for comment and is expected to respond in the coming days.