Indiana to Exempt Health Centers From New Policy Ending 340B Savings Under Medicaid

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The Indiana Family and Social Services Administration (FSSA), which oversees the state Medicaid program, is carving out FQHCs from its proposal to “fully discontinue Medicaid reimbursement” for drugs purchased under the 340B program.

Indiana will exempt community health centers from a controversial new state policy that will eliminate most providers’ ability to generate 340B savings under Medicaid managed care.

The Indiana Family and Social Services Administration (FSSA), which oversees the state

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Major Congressional 340B Action Unlikely in 2026, but Trump Administration Policies Could Still Affect Program, Health Policy Experts Say

Michael McCaughan (left) and Tom O’Donnell(right) speak during a Feb. 11 “Washington Update” keynote address at the 340B Coalition Winter Conference.
Michael McCaughan (left) and Tom O’Donnell (right) speak during a Feb. 11 “Washington Update” keynote address at the 340B Coalition Winter Conference in San Diego.
Major federal 340B legislation is unlikely to move through Congress in 2026—but a series of White House drug pricing initiatives [...]

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