Patients Come First New Jersey has announced a new pilot program initiated by the Trump administration, which aims to address the misuse of the federal 340B drug discount program through manufacturer rebates. The announcement was made on X.
The 340B Drug Pricing Program, established in 1992, allows eligible healthcare providers to buy outpatient drugs at reduced prices to support care for underserved communities. According to available data, the program has seen significant growth, with total purchases increasing from $9 billion in 2014 to over $38 billion by 2021. Critics have expressed concerns about transparency and whether the discounts truly benefit vulnerable patients.
A study published in the JAMA Health Forum in 2024 examined 2,116 general acute care hospitals and found that participation in the 340B program was linked to increases in unprofitable service lines—such as psychiatric, HIV, and substance use services—primarily at public hospitals. Nonprofit hospitals participating in the program showed limited changes in these areas, except for oncology services.
According to a report from the Medicare Payment Advisory Commission released in 2023, hospitals participating in the 340B program constituted 53% of short-term acute care hospitals in 2020. These facilities accounted for 79% of Medicare hospital outpatient drug spending. The report highlighted that current policies may not always ensure that low-income patients directly benefit from these drug discounts.
Patients Come First is a national advocacy group dedicated to reducing barriers to patient care and opposing policies that hinder medical innovation. The organization operates a grassroots network of state-level executive directors who represent patients’ interests and aim to counteract special interests influencing healthcare policy.
