AG sends cease-and-desist letter to pharmaceutical company after pricing spat with MU Health Care

COLUMBIA, Mo. (KMIZ)

Missouri Attorney General Catherine Hanaway announced on Monday that her office sent a cease-and-desist letter to a pharmaceutical company.

A press release from Hanaway’s office claims Eli Lilly and Company cut off MU Health Care from 340B program pricing for refusing to comply with a policy change by the company “requiring 340B hospitals to submit detailed claims data for every dispensation of any Lilly product, regardless of setting.”

The letter alleges the claim-data submission requirements violates the Missouri Merchandising Practices Act.

“By representing that covered entities may purchase drugs at federally required 340B prices while simultaneously denying those prices to Missouri hospitals that refuse to provide unnecessary claims data, Lilly misled consumers and used its market position to force unlawful conditions on Missouri healthcare providers,” Hanaway’s release says.

“We appreciate the Missouri Attorney General's efforts to protect patient privacy and preserve our ability to provide high-quality care to all patients,” MU Health Care spokesman Eric Maze wrote in an email to ABC 17 News.