Pence Confirms HIP 2.0 Approval

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The state of Indiana has received federal approval to implement HIP 2.0 instead of Medicaid. Governor Mike Pence says the program offers health care access to 350,000 uninsured Hoosiers. The Family and Social Services Administration will begin taking applications immediately.

January 27, 2015

News Release

Indianapolis, Ind. -- Governor Mike Pence announced today that the State has received approval from the federal government to use an updated version of the consumer-driven Healthy Indiana Plan known as HIP 2.0 instead of Medicaid to offer access to quality health care to 350,000 uninsured Hoosiers. The Family and Social Services Administration (FSSA) will begin taking applications immediately, and coverage will begin February 1.

"Since the beginning of my administration, we have worked hard to ensure that low-income Hoosiers have access to a health care plan that empowers them to take charge of their health and prepares them to move to private insurance as they improve their lives," said Governor Pence. "This has been a long process, but real reform takes work."

HIP 2.0 participants are required to contribute to a POWER account, which they manage like a health savings account and are rewarded for using preventive care. Consequences for non-payment range from mandatory co-pays for services to loss of coverage. In addition, the plan includes a co-pay for emergency room use, designed to encourage appropriate use of the emergency room.

The plan also offers low-income Hoosiers an option to receive assistance in purchasing private-market insurance through their employers, called HIP Link. The use of a health savings account as part of a premium assistance program is the first of its kind in the nation. The plan also refers applicants to job training and job search programs offered by the State of Indiana.

With this approval, Indiana will end traditional Medicaid for all non-disabled Hoosiers between 19 and 64 and will continue to offer the first-ever consumer-driven health care plan for a low-income population. In addition, the State will reform its traditional Medicaid program by increasing reimbursement for healthcare providers, which will improve access to care. The State negotiated the rate increase as part of its agreement with the Indiana Hospitals Association, which will help fund the Healthy Indiana Plan so it can be offered at no additional cost to taxpayers.

"The expanded and updated HIP 2.0 is based on a program that has been serving 60,000 low-income Hoosiers in our state for seven years," said Governor Pence. "It is a proven model for Medicaid reform across the nation."

For information on how to enroll in the Healthy Indiana Plan, visit www.HIP.IN.gov or call 1-877-GET-HIP-9.

The State submitted its formal waiver to the Centers for Medicare and Medicaid (CMS) on July 1, 2014.

Source: Office of Indiana Governor Mike Pence

January 27, 2015

News Release

Indianapolis, Ind. -- Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the federal Centers for Medicare & Medicaid Services giving the green light to the Healthy Indiana Plan expansion (HIP 2.0), which is in lieu of traditional Medicaid expansion required under the Affordable Care Act (ACA).

"We are very pleased that the Centers for Medicare & Medicaid Services (CMS) appreciated Indiana’s unique brand of addressing the needs of our uninsured population and recognized HIP 2.0 as the best option for Indiana to expand health care coverage. The Indiana Chamber had reviewed HIP 2.0 and urged CMS to approve it.

"HIP provides reimbursement to health care providers at Medicare rates. Otherwise, health care providers recover such losses by increasing prices for private sector employers and their employees through cost shifting. Any attempt to lessen that cost shift is welcome.

"What's more, the approval of HIP 2.0 will provide health care coverage for tens of thousands of additional Hoosiers and bring billions of dollars into Indiana's economy.

"We applaud Gov. Pence and his administration for recognizing that HIP 2.0 was the best course for the state and for staying firm in that belief."

The Indiana Chamber partners with 17,000 members and investors – representing three million Hoosiers – to achieve the mission of “cultivating a world-class environment which provides economic opportunity and prosperity.”