Missouri AG tells Eli Lilly to stop hospital pricing conditions

Missouri Attorney General Catherine Hanaway sent a cease-and-desist letter to Eli Lilly and Company on Monday. The letter directs the pharmaceutical firm to stop imposing conditions on Missouri hospitals that participate in the federal 340B Drug Pricing Program. Hanaway stated that the company is abusing its market power to impose higher prescription prices in the state.

The dispute centers on a policy Eli Lilly instituted in 2026. The new rule requires 340B hospitals to submit detailed claims data for every dispensation of any Lilly product, regardless of the setting. Hanaway argued that these tactics fall hardest on rural communities that depend on the program to keep clinics open and ensure patients receive necessary care.

University of Missouri Health Care initially refused to comply with the new data requirements. In early July, Eli Lilly cut the health system off from 340B pricing. To prevent further harm to patients, MU Health Care agreed to temporarily provide the demanded data. Hanaway said the hospital system now bears the heavy and unnecessary cost of complying with a policy that violates federal intent and Missouri law.

Hanaway warned that big pharmaceutical companies can no longer bully state hospitals or hold prescription drug prices hostage. Her office is asking Missourians who believe they have been impacted by unfair pharmaceutical prices to file a complaint at ago.mo.gov. The attorney general’s office issued the letter on Monday, October 26, 2026. KCTV has reached out to Eli Lilly for comment and will update the story when a response is received.