Indiana health care providers oppose Medicaid cost-cutting proposal
Airfind news item
By Tim Spears
Published on March 18, 2026.
The Indiana Family and Social Services Administration (FSSA) has proposed a change to the 340B Drug Program, which would significantly reduce revenue for many hospitals and clinics while potentially saving the state millions. The change would allow certain health care providers to purchase outpatient drugs at a discount, then charge insurance providers full price to fund care for underserved communities. The FSSA wants to prevent Indiana Medicaid programs from being charged more than the discounted price. The state claims this change will save $20 million. However, critics argue that the change will result in a net loss, offsetting higher premiums, higher co-pays, and a mix of clinics and hospitals at risk of closing.
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