Medicaid Carve-in Policy Term Definition

340B entities may elect to use drugs purchased at 340B prices to bill for Medicaid patients. This activity is termed a “Medicaid carve-in.” If an entity chooses to use 340B drugs to bill Medicaid, it must indicate this on the Medicaid Exclusion File and list the appropriate Medicaid provider numbers or NPIs. Entities must inform HRSA whether they are carving in or out.