Jeanette Hoffman, Executive Director of Patients Come First New Jersey, said Congress should enact patient-centered 340B reforms that tie program savings to lower out-of-pocket costs and greater transparency.
“patients continue to face sky-high drug costs even as some hospitals reap enormous savings from 340B,” said Hoffman. “the program has ballooned to more than $66 billion in discounted drug purchases, too few of those savings are reaching the very people 340B was meant to help: patients. New Jersey patients pay nearly 20% more than the national average for prescription drugs. major New Jersey health systems participate in 340B, buying medications at deeply discounted prices. If those discounts aren’t being passed through to the patient, in the form of lower co-pays, reduced hospital bills, or expanded charity care, then something is fundamentally wrong.”
The federal 340B Drug Pricing Program was established in 1992 and is managed by the Health Resources and Services Administration’s (HRSA) Office of Pharmacy Affairs. It mandates drug manufacturers to provide outpatient medications at substantial discounts to eligible entities such as Disproportionate Share Hospitals (DSH), Federally Qualified Health Centers (FQHCs), and Ryan White clinics. The program was designed by Congress to enable safety-net providers to “stretch scarce federal resources” in order to serve more patients and enhance services.
In April 2025, Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy released a report following a multi-year investigation into the 340B program. The report urged Congress to increase transparency, clarify the definition of a “340B patient,” and ensure that the financial benefits of the program reach patients directly. Cassidy’s report highlighted inconsistencies in how 340B revenues are utilized and called for reforms focused on improving patient affordability and outcomes.
According to analyses conducted in New Jersey, costs can escalate when 340B discounts are not linked to patient prices. A state profile from the Pharmaceutical Research and Manufacturers of America (PhRMA) in 2025 estimated that employers in New Jersey pay an additional $62 million annually because 340B purchases replace rebates that would otherwise reduce plan spending. This situation also results in an $18 million loss in state and local tax revenue. The analysis further noted an increase in hospital assets alongside a decrease in uncompensated care.
Patients Come First New Jersey is part of a national network dedicated to eliminating barriers to healthcare access. Its executive director, Hoffman, is an experienced communications and public affairs professional. The organization advocates for policies grounded in science and prioritizes patient welfare, asserting that New Jersey patients should be the primary decision-makers and beneficiaries within the healthcare system.
