Molly Jenkins, Senior Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), has expressed concerns about the 340B program’s growth. Jenkins said that the program’s rapid expansion is benefiting large tax-exempt hospitals without providing significant advantages to vulnerable patients – a topic garnering attention in New York.Â
“The massive federal drug program most have never heard of, 340B, is now $81.4 billion in size as of 2024,” said Jenkins. “The 340B program, which costs taxpayers billions each year, is rapidly growing due to large, tax-exempt hospitals exploiting the program for profit with no evidence patients are benefitting. Big tax-exempt hospitals can exploit the 340B program by buying medicines at a steep discount, sometimes as little as a penny, and marking them up, by thousands. Because there are no guardrails on how hospitals and clinics use 340B profits, the money often isn’t going to help low-income and uninsured patients afford medicines.”
According to the Health Resources and Services Administration (HRSA), covered entities spent $81.4 billion on outpatient drugs through the 340B program in 2024. This expenditure underscores the program’s significant expansion, making it the second-largest federal drug initiative. Concerns have been raised regarding whether oversight is keeping pace with this growth.
An analysis by CBS News found that over 400 nonprofit hospitals sought to collect more than $800 million from patients eligible for charity care within a single year. Many of these institutions are accused of abusing the 340B program by retaining drug discounts without reducing patient costs or debts. Nationwide, this indicates systemic issues where the program’s intent to assist vulnerable populations is compromised by profit-driven motives.
Only 24% of New York’s 340B contract pharmacies are located in medically underserved areas. Meanwhile, 86% of New York’s 340B hospitals provide charity care below the national average. Employers are also estimated to pay $445 million more annually due to lost rebates tied to 340B claims, which can translate into higher costs for workers.
Jenkins’ professional background includes her role as Senior Director of Public Affairs at PhRMA, where she focuses on communication strategies related to cost and value priorities. Her previous experience encompasses leading issue-advocacy and reputation campaigns at a public affairs firm and various congressional communications roles on Capitol Hill.
