Key Takeaways Eli Lilly has joined Johnson & Johnson in filing a lawsuit against the federal government over a decades-old drug discounting program.The companies have said the 340B program, which requires drugmakers to sell discounted medications to certain medical facilities,

Eli Lilly (NYSE:LLY) has filed a lawsuit over a U.S. health agency's alleged attempts to block its model for offering rebates for drugs supplied under the government's 340B Program, days after its rival Johnson & Johnson (NYSE:JNJ) filed a similar lawsuit.

Eli Lilly sued the Health Resources and Services Administration (HRSA) for allegedly blocking the pharma giant's proposal to change the manner by which it offers discounts on medicines under the 340B program.

Eli Lilly proposed a plan to ensure 340B entities pay no more than the ceiling price by providing them with cash directly on a weekly basis.

The case centers on the federal 340B program, in which drugmakers provide discounts to eligible healthcare providers that serve low-income populations. Drugmakers must participate in the program to receive funds from government health insurance programs like Medicare and Medicaid.

Eli Lil­ly is now the sec­ond drug­mak­er to pro­pose a re­bate mod­el for 340B drug price dis­counts — and the sec­ond to sue over it. … Get free access to a limited number of articles, plus choose newsletters to get straight to your inbox.

Johnson & Johnson is escalating its fight with the federal government over its controversial plan to change how it doles out drug discounts to hospitals. | Johnson & Johnson is escalating its fight with the federal government over its controversial plan to change how it doles out drug discounts to hospitals.