Indiana tells health clinics they're exempt from drug discount program change
Airfind news item
By Gregg Montgomery
Published on May 3, 2026.
The Indiana Family and Social Services Administration (FSSA) has exempts dozens of federally-qualified health clinics serving low-income Hoosiers from a proposed rule discontinuing part of the 340B drug discount program. The program allows hospitals and federal-qualified clinics that serve a disproportionate share of uninsured or low-low-income patients to purchase discounted outpatient drugs directly from manufacturers. The savings can be reinvested in charity care and essential services. The exemption does not apply to Indiana hospitals, which have raised similar concerns about the elimination of 340B reimbursement for Medicaid. Critics argue that the program does not use state taxpayer dollars as savings are derived from pharmaceutical companies.
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