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340B and Indiana Medicaid – Major Changes Planned

Covered entities have until Friday, March 27th to submit comments to FSSA ahead of proposed changes to eliminate 340B Program savings for Medicaid patients.

The window is quickly closing for covered entities and other stakeholders to weigh in on changes proposed by the Indiana Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP) that would fully discontinue Medicaid reimbursement for drugs purchased under the 340B Program. This change means that OMPP will instead seek the manufacturer rebate through the Medicaid Drug Rebate Program and eliminate a covered entity’s ability to use discounted 340B Program drugs on Indiana Medicaid patients, including both traditional Fee-for-Service and Managed Care Organization patients. The public notice is available at this link.

The change is proposed to take effect on July 1, 2026, with public comments being sought through March 27th. Covered entities have publicly stated that this change may remove millions of dollars of 340B savings that help them to provide care and services to low-income and uninsured patients.

No public hearing will be conducted. Public comments can be submitted in writing or via email through 5PM on March 27th. Blue & Co. strongly urges covered entities to provide comments related to the impact that this change will have on their 340B Program.

Mail to: FSSA, Office of Medicaid Policy and Planning, Attention: Connor Ortman, 402 West Washington Street, Room W374, Indianapolis, Indiana 46204.

Email to: spacomment@fssa.in.gov with the subject line of COMMENT RE: 340B DRUG PROGRAM.

Contact Us

Please direct any questions to one of the Blue & Co. 340B ACE-certified experts.

Kyle Smith, CPA, 340B ACE, Director

Jason Prokopik, PharmD, 340B ACE, Senior Manager

Alyssa Kramer, PharmD, 340B ACE, Manager

Kelly Kuhn, 340B ACE, Senior Pharmacy Consultant

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