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New York lawmakers have to stop hospitals from looting 340B

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03.09.2025

New York state lawmakers are considering a bill that'd make it easier for big hospital systems to siphon off financial aid that's meant for poor patients.

The bill involves the 340B Drug Pricing Program, a federal initiative created more than three decades ago to help low-income patients. Unfortunately, it has morphed into a scheme that primarily benefits large hospital systems and unaccountable middlemen instead of vulnerable communities.

As a physician and former governor, I've spent my career working to ensure that all patients get the care they deserve. That's why it's so frustrating to watch a well-intended program morph into a lucrative revenue stream for the most powerful healthcare special interests in the country.

Under 340B, eligible hospitals and community health centers can purchase medications at steep discounts. The intent was simple: allow providers to better serve patients who couldn't pay full price for medications.

But there's no actual requirement for hospitals to pass along the savings from 340B discounts. So instead, many large hospitals buy medicines at a discount but charge patients and insurers full price –– or even mark up the prices –– thus boosting their profits by pocketing the difference. The typical 340B enrolled hospital

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