Skip to Content, Navigation, or Footer.
Support the IDS in College Media Madness! Donate here March 24 - April 8.
Thursday, March 28
The Indiana Daily Student

New healthcare plan for State

New strides have been made for Gov. Mike Pence’s new health care program, the Healthy Indiana Plan, which aims to offer affordable health insurance plans to low-income families in Indiana.

Pence started negotiating with federal agencies to waive the Medicaid program in Indiana and to replace it with his HIP. He announced Tuesday that Indiana had received approval from the federal government to use an expanded version of the plan, which he calls the Healthy Indiana Plan 2.0.

“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,” Pence said in a press release. “This has been a long process, but real reform takes work.”

The recent approval by the federal government allowed Indiana to be waived from using Medicaid and expand the size of the HIP, which gave an additional 350,000 Indiana residents the right to purchase health insurance from the state.

“This agreement is great news for hundreds of thousands of low-income Hoosiers and a testament of the effectiveness of the Healthy Indiana Plan,” U. S. Sen.Dan Coats, R-Ind., said in a press release. “Indiana is leading the way nationally by creating state-based, innovative ideas for governing.”

Marni Lemons, a spokesperson from Pence’s office, offered a comment on the HIP 2.0.

“Since HIP 2.0 was just approved by the federal government, and we are only beginning this week to accept applications, no one is enrolled,” Lemons said. “Therefore, we have no enrollment figures, nor is there an effectiveness study ... the purpose of the program is not to save money, but to provide healthcare coverage and, therefore, access to healthcare to those who currently have none.”

In order to be eligible for the program, an individual must be between the ages of 19 and 64 and be earning less than 138 percent of the federal poverty level, which is approximately $16,000. The number can be adjusted to account for families.

Details for the sources of funds for the program were released in a financial overview for fiscal years ?2016-2021.

One interesting component of the HIP is the POWER Account, which resembles a savings account. Members contribute specified amounts to the account comparable to their yearly income. Participants will pay no more than 2 percent of their yearly income to the program.

In addition to the POWER Account, funds for the HIP will come from state revenues from cigarette taxes, which over the six-year period will account for approximately $676 million, and revenues that are collected from the Hospital Assessment Fee, a program that collects fees from licensed medical institutions, which will account for $959 million for a total of $1.635 billion.

The HIP offers three separate options for health insurance to members. The Plus Plan is the suggested plan, in which members contribute monthly fees to the POWER Account.

Members of the Basic Plan cannot afford to contribute to the POWER Account and have a household income less than the federal poverty level, resulting in a reduction of benefits such as dental and vision care. The Link Plan works to compliment members who already have health insurance through their employer. Although the program was just reauthorized and expanded, there have been some analyses done of the effectiveness of the original HIP program.

According to a Dec. 2013 financing report from the governor’s office, the HIP has decreased the prevalence of inappropriate emergency room use and has resulted in an increased rate of preventive care use compared to the rates of individuals with private health insurance.

In a 2013 survey done by Mathematic Policy Research, it was found approximately 96 percent of members were either somewhat or very satisfied with their overall experience with the plan.

Coverage for HIP 2.0 will start for all enrolled ?members Feb. 1.

Get stories like this in your inbox
Subscribe