Patients Rising Urges NY to Reject 340B Expansion

Patients Rising has submitted formal letters to New York State leaders raising concerns about the proposed expansion of the federal 340B Drug Pricing Program and urging a more transparent, patient-focused approach.

The letters were sent ahead of this week’s Senate Finance Committee meeting and ongoing state budget negotiations, where 340B expansion is under active consideration.

At the center of our message is a simple principle: patients should know when a program is supposed to help them—and whether it actually does.

Our Message to New York Leaders

Patients Rising submitted two letters:

• One to the Senate Finance Committee urging opposition to S.1913/A.6222
• One to Governor Kathy Hochul and Assembly leadership urging removal of 340B expansion language from the state budget

Both letters highlight the same core concern: New York is being asked to expand a program that lacks basic transparency for patients.

Why This Matters for Patients

The 340B Drug Pricing Program was created to help hospitals and clinics better serve patients by purchasing medicines at discounted prices.

But today, patients are often left out of the equation.

As outlined in our letters:

• Hospitals can purchase medicines at steep discounts, but patients are often billed full price
• Patients are rarely told if their prescription was filled through the 340B program
• There is little public reporting on how hospitals use 340B savings
• Many contract pharmacies are located in higher-income areas or even outside New York entirely

In New York alone, hospitals have established nearly 1,700 contract pharmacy arrangements, with a significant portion located outside the state or in communities that are not underserved

At the same time, New York hospitals participating in 340B provide, on average, less charity care than hospitals nationwide

A Growing Program Without Clear Accountability

The 340B program has grown rapidly in recent years, now totaling more than $80 billion in discounted drug purchases annually

Despite that growth, there are still no clear answers to basic questions patients are asking:

• Did I benefit from this program?
• Did it lower my out-of-pocket costs?
• How are these savings being used in my community?

Without transparency, those questions remain unanswered.

Our Position: Fix It Before You Expand It

Patients Rising is urging New York leaders to take a step back.

Before expanding the program through legislation or the state budget, policymakers should:

• Require hospitals to report how much they save through 340B
• Show how those savings are used to support patients
• Ensure that any savings are actually benefitting their community and lowering patient costs

Expanding the program without these safeguards risks reinforcing a system where financial benefits are captured by hospitals, pharmacy benefit managers, and large pharmacy chains—while patients see little direct relief.

Why the Budget Is the Wrong Vehicle

We also made clear that the state budget is not the right place to make major healthcare policy changes of this scale.

The 340B program is complex and far-reaching. It requires thoughtful debate, stakeholder engagement, and a clear understanding of patient impact—not rushed inclusion in a budget negotiation.

Continuing the Conversation in New York

These letters build on our ongoing work to bring transparency to the 340B program in New York:

• [New York 340B Budget Transparency]
• [Billions in Discounts, But Do Patients Pay the Price?]

We will continue to elevate patient voices and push for policies that ensure healthcare programs deliver real, measurable benefits to the people they are intended to serve.

Bottom Line

Patients deserve to know.

If a program is built to help patients, it should be able to show it to the patients it's helping.