340B Advocacy

January 2026

HealthNet Advocates, 

Indiana is advancing a Medicaid State Plan Amendment (SPA) that would redirect 340B drug savings away from community health centers and into the state Medicaid program. This action is moving forward without public comment. Community voices are essential—now

Why This Matters 

Community health centers (CHCs) like HealthNet rely on 340B savings to: 

  • Provide affordable or free medications to patients 
  • Fund non-billable services (care coordination, social work, outreach) 
  • Offset losses from caring for the uninsured, for whom health centers receive no extra reimbursement 

These savings are not taxpayer dollars. They come from manufacturer discounts established by Congress to help safety-net providers stretch scarce resources. 

This issue comes at a critical moment for CHCs: the number of uninsured patients is rising, Medicaid reimbursement remains inadequate, and community health centers receive no extra reimbursement to care for the uninsured. 340B savings are increasingly essential to filling the gap. 

If 340B savings are redirected: 

  • Services will be reduced  
  • Wait times will increase 
  • Access to care will be limited—for everyone, regardless of insurance status 

If a community health center serves your neighborhood, your community is at risk

What’s Happening 

  • Indiana has submitted a Medicaid SPA that would allow the state to claim drug rebates tied to 340B medications. 
  • In practice, this would pull 340B savings away from community health centers
  • The SPA has been approved for submission by the Indiana State Budget Committee and is under CMS review
  • There is no formal public input process. Advocacy is the only way to intervene.