If New York legislators have questions about the efficacy of the 340B Drug Pricing Program, they should look closely at a recent 340B transparency report from the Minnesota Department of Health — a report that paints a bleak, concerning portrait of a program failing to achieve its intended mission. The federal 340B program, created by Congress in 1992, allows certain hospitals and clinics to buy prescription drugs at steep discounts, enabling them to stretch limited resources and support care for vulnerable patients in underserved areas. It’s an honorable mission. But as the program has grown, serious questions have emerged about how those savings are used and whether the program still works as originally intended.

Minnesota’s recent 340B report revealed data from a program far more complex — and costly — than is often acknowledged. The state’s covered entities, including hospitals and other grantees, brought in about $1.34 billion in net revenue from the sale of 340B prescriptions in 2024. More than 20% of that revenue was generated by the state’s own healthcare offerings. 

Presently, New York State lawmakers are considering a proposal that would essentially “put the cart before the horse.” The state Senate included language in its........

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