Jeanette Hoffman, executive director of Patients Come First New Jersey, said on March 4 that New Jersey policymakers should reform the federal 340B Drug Pricing Program to ensure savings more directly benefit low-income and underserved patients.
Hoffman said concerns have grown over the program’s expansion, limited transparency, and the use of contract pharmacies, arguing that questions remain about whether patients are receiving the intended benefits.
“Garden State hospitals participate in this safety-net drug program, yet 16% of New Jersey 340B hospitals provide below the national average for charity care. Data shows that New Jersey 340B hospitals earn 1.4 times more in 340B profits than they actually spend on charity care. Due to the program’s lack of transparency and oversight, large players in the health care system take advantage of 340B without passing the savings along to the patients,” Hoffman said in comments published by NJ Spotlight News.
“New Jersey’s elected representatives should work together to reform the 340B program to better serve and benefit all Garden State patients,” she added.
The 340B program requires drug manufacturers to sell outpatient drugs at discounted prices to eligible safety-net hospitals and clinics. It was designed to help providers serving low-income and uninsured patients stretch limited resources, but does not require discounts be passed directly to patients or savings used for specific services. Peer-reviewed commentary in JAMA Health Forum has raised concerns about limited transparency, rapid program growth, and the expansion of contract pharmacy arrangements, questioning whether savings consistently translate into measurable patient benefit.
New Jersey’s participation in the program includes hundreds of contract pharmacy arrangements tied to eligible providers. A recent analysis cited by PhRMA identified more than 600 in-state contract pharmacy locations, noting that only a minority are located in areas with above-average social vulnerability, and estimated an $18 million reduction in state and local tax revenue associated with the program.
The U.S. Government Accountability Office has also identified oversight gaps in the program, including limits on auditing for duplicate discounts and ensuring corrective action for noncompliance, particularly around Medicaid rebate interactions and eligibility compliance.
At an October 2025 Senate HELP Committee hearing, Chairman Bill Cassidy said the 340B program had “ballooned with limited oversight,” raising questions about how revenue is used and whether it directly benefits low-income patients. Cassidy said program growth is tied to higher health care costs, and pointed to concerns involving contract pharmacies, hospital consolidation, duplicate discounts, and weak transparency requirements.
Patients Come First New Jersey is part of a national patient advocacy organization focused on policies affecting patient access and medical innovation. The organization’s New Jersey work centers on barriers that can delay care, increase costs, or make it harder for patients to receive treatment, including health-system practices that affect affordability and access.
