Chronic Care Policy Alliance said it supports the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act, a debate gaining traction in New Jersey. The announcement was made in a blog post.
The 340B Drug Pricing Program, created under the Veterans Health Care Act of 1992, requires drug manufacturers to provide outpatient drugs at discounted prices to eligible healthcare organizations. The program’s goal is to enable providers to stretch federal resources to reach more patients in need. Oversight challenges have prompted discussions about reform to ensure patient benefits are realized.
A 2025 analysis by the Congressional Budget Office found that hospitals and clinics purchased $44 billion worth of 340B-discounted drugs in 2021, up from $6.6 billion in 2010. The report attributes the increase to expanded program participation and changes in prescribing patterns that have boosted federal spending.
PhRMA reports that 25 hospitals in New Jersey participate in the 340B program, holding 547 contracts with pharmacies across the country. Of these contract pharmacies, only 18% are located in medically underserved areas, which may affect the program’s intended impact. Furthermore, 16% of participating hospitals in New Jersey provide charity care at levels below the national average.
The Chronic Care Policy Alliance is a national nonprofit coalition representing individuals with chronic illnesses. It advocates for equitable access to affordable healthcare, supports patient-focused reforms, and works with policymakers to strengthen safety-net systems across the United States.
