The state has submitted a waiver application to the federal government regarding the Healthy Indiana Plan 2.0. It would cover 350,000 Hoosiers without insurance. July 2, 2014

News Release

INDIANAPOLIS, Ind. – Today, the State of Indiana submitted the Healthy Indiana Plan (HIP) 2.0 waiver application to the U.S. Department of Health & Human Services (HHS). Through this waiver, the state seeks to expand the consumer-driven Healthy Indiana Plan to 350,000 uninsured Hoosiers. The waiver to extend the current Healthy Indiana Plan, which covers 45,000 Hoosiers, was submitted by its deadline on Monday, June 30.

The state recently ended a 30-day formal public notice and comment period during which Hoosiers reviewed the waiver for the expansion of the Healthy Indiana Plan and submitted comments to the state. The administration submitted the comments with the HIP 2.0 waiver to the Centers for Medicare and Medicaid Services (CMS). The administration is hopeful for a timely response so that more uninsured Hoosiers can realize the benefits of this successful, consumer-driven health plan.

The Healthy Indiana Plan began in 2008 under a five-year waiver from the federal government, and it was continued by two one-year waivers granted in 2012 and 2013. It is the nation's first consumer-directed plan for Medicaid recipients. Since passage of the Affordable Care Act, Indiana has sought to continue the program through a series of discussions and waiver requests with CMS, a division of the U.S. Department of Health and Human Services.

The waiver application as well as the Governor's letter to HHS Secretary Sylvia Mathews Burwell can be found here:

Source: The Office of Governor Mike Pence

July 2, 2014

News Release

INDIANAPOLIS, Ind. – When it comes to access to quality health care, no Hoosier deserves to fall through gaps in the state's coverage system. This is why the Indiana Hospital Association urges the federal CMS agency to quickly approve the new HIP 2.0 Healthy Indiana Plan which was just submitted by Governor Mike Pence. The plan would provide health care coverage for up to 350,000 residents of Indiana who fall in the coverage gap, just outside the income requirements to enroll in Medicaid and below the level to qualify for ACA tax credits.

“We are encouraged to see the final HIP 2.0 plan submitted for federal approval, and hopeful about what expanded health care access will mean to the people of our state,” said Doug Leonard, president of Indiana Hospital Association. “The approval of this program would mean 350,000 Hoosiers who would normally just go without will get vital preventive care. It means they will be able to go to bed at night, knowing they are covered if they get sick or have an accident. It means our hospitals will see fewer indigent patients, and patients who let illnesses linger until they become complex emergency room cases. It means our members will be able to focus on getting patients the kind of preventive, common-sense care that will help contain costs. This is a monumental step forward for the health of the state of Indiana,” Leonard said.

As proposed, there are three plans under the HIP 2.0 package: HIP Link, HIP Plus and HIP Basic. HIP 2.0 is better for health care providers than Medicaid, Leonard said, because the reimbursements rates for physicians are higher, making the program more sustainable and increasing access. In addition, HIP 2.0 eliminates the waiting lists under the original plan and provides more essential services such as maternity care and mental health services.

IHA members will provide support for HIP 2.0 through an existing provider fee program. This fee, coupled with additional tobacco tax revenue dedicated to the current HIP program, will help the state qualify for billions in federal matching dollars. “We are very happy to see Indiana tap into this critical source of funding and use it to get health care to the Hoosiers who need it most,” Leonard said.

The new plan will provide better reimbursement to Indiana hospitals, which are struggling to provide as much as $3 billion in uncompensated care every year.

According to IHA and its Expand Indiana campaign on coverage expansion:

-Approximately 860,000 Hoosiers, or 14 percent of the population, are uninsured.

-As many as 300,000 Indiana residents in low-paying jobs do not earn enough to qualify for tax credits and subsidies through the Health Insurance marketplace. However, they earn too much income to qualify for Indiana’s existing health care programs for the poor.

-If coverage expansion is approved, the average family could save as much as $677 in premiums per year as health insurance premium increases will be reduced.

HIP 2.0 will help Indiana's employers avoid between $23 to $24 million in federal “shared responsibility” tax penalties required of states who opt out of participation. (Source: Jackson Hewitt Tax Service, Inc.)

To learn more about Expand Indiana, visit

In 2013, Indiana hospitals:

-Created more than $33 billion in state economic activity

-Employed approximately 125,000 individuals and supported an additional 260,000 jobs elsewhere in the Indiana economy

-Spent nearly $8 billion on Hoosier employee wages and benefits

-Purchased over $16 billion in goods and services from other businesses in Indiana

-Nationally, hospitals ranked as the second largest source of private sector jobs

Indiana Hospital Association is a non-profit organization that serves as the professional trade association for 164 Hoosier hospitals. These members are either independent or a member of one of the 23 systems in the state. Membership includes hospitals, multi-hospital systems and community mental health centers. The mission of the IHA is to provide leadership, representation and services in the common best interests of its members as they promote the improvement of community health status. IHA’s primary responsibility is to represent the interests of hospitals in matters of public policy. IHA also provides members with education, communications and data collection services.

Source: The Indiana Hospital Association

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