A proposed change to Indiana’s Medicaid program could force thousands of northern Indiana residents to lose access to affordable, life-saving care.

The Indiana Family and Social Services Administration (IFSSA) plans to end 340B savings under Medicaid managed care beginning July 1, 2026. The federal 340B Drug Pricing Program allows safety-net providers to purchase prescription medications at a lower rate and invest those savings into the community without costing taxpays additional dollars.

While state officials describe the proposal as a budget measure, providers across the state warn of immediate and long-lasting consequences for Hoosiers.

For HealthLinc and other community health centers across the state, 340B savings fund services Medicaid does not fully reimburse, including chronic disease management, clinical pharmacy support, transportation assistance and other programs that keep vulnerable patients stable and out of emergency rooms. These services help prevent financial strain and ensure patients receive timely, high-quality care.

Without these funds, health centers, including HealthLinc, will be forced to make difficult decisions that directly impact access to care. Programs may be reduced, staff positions eliminated and higher costs for care and prescriptions for our community.

“As a nonprofit with a mission to create healthy communities, we cannot provide the same level of care to our patients and those who need it most without the 340B savings program,” Melissa Mitchell, HealthLinc’s CEO, stated.

This is not simply a policy debate. If approved, these changes will force reductions in care starting as early as July 1, affecting working families, seniors and children across northern Indiana who are already struggling to afford health care. Community health leaders, including HealthLinc, are urging state officials to reconsider before access to care is permanently reduced.

The IFSSA is accepting written comments on this change through March 27. Comments may be directed to the Office of Medicaid Policy and Planning either by mail or emailing spacomment@fssa.in.gov. The subject line should include: COMMENT RE: 340B DRUG PROGRAM.