Funds are lifeline for Indiana patients, community health centers
In northern Indiana, thousands of families could soon face a stark reality: reduced access to affordable, life-saving health care. The Indiana Family and Social Services Administration is considering ending 340B savings under Medicaid managed care starting July 1. This program allows community health centers to stretch scarce resources and provide vital services without increasing taxpayer costs.
Community health centers are a cornerstone of Indiana’s health care safety net. In 2023, state data from the National Association of Community Health Centers shows that 436 centers served more than 820,000 patients. Nearly half of these patients rely on Medicaid, and 39% live below the federal poverty level.
Beyond primary care, these centers offer integrated behavioral health, dental and pharmacy services, along with essential support such as transportation, housing assistance and access to healthy food. Together, these services help keep patients healthy while reducing costs across the health care system.
For community health centers like HealthLinc, 340B savings are not a luxury — they are a lifeline. They fund programs that go well beyond the walls of the clinic such as telehealth, medical-legal partnerships, medication-assisted treatment, remote patient monitoring, nutrition education, chronic disease management, outreach and insurance enrollment assistance. These services are not extras; they are essential to helping patients navigate health and life challenges.
Consider HealthLinc’s Food as Medicine program. It is designed to prevent and manage chronic conditions while addressing food insecurity, a significant barrier to good health for many Hoosiers. Patients work with their providers to access healthy food, receive nutrition education, participate in cooking classes and, in some cases, obtain the tools needed to prepare meals at home.
The impact is immediate and deeply personal. As one participant shared, “If no one benefited from this program, just know I did. Thank you so much for everything you have given me. I wouldn’t have made it some days without these boxes giving me something to eat.”
Programs like this exist because 340B savings make them possible. They fill the gaps Medicaid does not fully cover and ensure patients can follow through on care plans in real, practical ways.
The stakes are high. Without these funds, health centers will face difficult choices: scaling back services, reducing staff and shifting costs to patients who can least afford them. That impact will be felt most by working families, seniors and children, including the more than 272,000 children and 84,000 older adults served by Indiana’s health centers today.
This is a moment for action. The state is accepting public comment on this proposal through March 27. Community voices matter in decisions that directly affect access to care. Hoosiers can share their perspectives by emailing spacomment@fssa.in.gov with the subject line: COMMENT RE: 340B DRUG PROGRAM.
The potential loss of 340B savings is not just a policy change. It is a direct and immediate threat to the health and stability of communities across Indiana. Reconsideration now can help health centers remain strong for those who need them most.
Source: National Association of Community Health Centers, 2023 State Data, www.nachc.org.
