Health care advocates say FSSA's proposed drug program change will erode Indiana's safety net
Airfind news item
By Arika Herron
Published on March 18, 2026.
Indiana's Family and Social Services Administration (FSSA) has proposed to discontinue Medicaid reimbursement for drugs purchased under the federal 340B Drug Pricing Program, a federal program designed to help hospitals afford care for low-income patients. Instead, the state would seek manufacturer rebates through the Medicaid Drug Rebate Program, which is estimated to save the state around $60 million annually. However, health care advocates argue this move undermines the safety of providers and vulnerable populations served by these programs. The 340B program requires pharmaceutical companies to sell discounted drugs to health care organizations that serve safety-net populations. If approved, the change will take effect on July 1.
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