Albany Should Reject 340B Expansion Legislation

CancerCare calls for focus on patients, not profits, in 340B program

Apr. 16, 2026 at 7:22pm

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A glowing, vibrant neon outline of a syringe or pill bottle set against a dark background, conceptually representing the need for transparency and accountability in the 340B drug pricing program.The 340B drug pricing program must return to its original mission of supporting vulnerable patients, not enabling profit-driven healthcare providers.NYC Today

CancerCare, a leading national cancer support organization, is urging New York Governor Kathy Hochul and state legislators to reject a proposed 340B Drug Pricing Program expansion in the state budget. CancerCare argues the 340B program has evolved into a profit-making opportunity for participating hospitals, leading to higher costs across the healthcare system, with little evidence that the savings are being used to provide more charity care or support for vulnerable patients as the program was intended.

Why it matters

The 340B program was created to help healthcare providers that serve a disproportionate number of low-income and uninsured patients access discounted prescription drugs. However, CancerCare says the program has been increasingly exploited by some hospitals to maximize profits, rather than prioritizing patient care and access. This issue is particularly concerning in the cancer treatment space, where 340B purchases make up a significant portion of total drug spending.

The details

CancerCare's analysis shows that cancer treatments account for roughly 41% of all 340B purchases, nearly three times the amount spent on any other drug class. An academic study found that 340B eligible hospitals kept nearly two-thirds of what insurers paid for infused drugs, far more than non-340B hospitals or independent practices. However, 340B hospitals nationwide provide less charity care on average than non-340B hospitals, and some 340B hospitals have been found to aggressively pursue medical debt from cancer patients.

  • In 2025, CancerCare's oncology social workers fielded nearly 1,000 calls and emails per week from cancer patients, caregivers, and family members.
  • The New York State Senate's budget resolution includes a proposal to expand the 340B program in the state.

The players

CancerCare

A leading national organization providing free, professional support services and information to help people manage the emotional, practical and financial challenges of cancer.

Kathy Hochul

The Governor of New York.

New York Legislature

The legislative branch of the government of the state of New York.

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What they’re saying

“Our work is deeply patient-centric and focused on maximizing positive outcomes for patients, and we advocate for the 340B program to return to its original mission and do the same.”

— Kim Czubaruk, Vice President of Policy at CancerCare

What’s next

Governor Hochul and the New York legislature will decide whether to reject the state Senate's proposed 340B expansion legislation in the state budget.

The takeaway

This case highlights the need for greater transparency and accountability in the 340B Drug Pricing Program to ensure the savings are being used to support vulnerable patients, as the program was originally intended, rather than being exploited for profit by some healthcare providers.