Indiana making it harder to get on, stay on Medicaid health programs:Report

Indiana has halted promoting state-subsidized health care programs like the Healthy Indiana Plan (HIP) to reduce Medicaid spending, eliminating advertising on January 13, the day Republican Gov. Mike Braun took office. The Family and Social Services Administration (FSSA) now re-verifies Medicaid eligibility quarterly instead of annually, aiming to limit enrollment, reported NWI.com.

Proposed Senate Bill 2, supported by FSSA and Republican lawmakers, seeks to cap HIP enrollment at 500,000 members, impose a lifetime benefit limit of 36 months, and reinstate a 20-hour-per-week work requirement. This work mandate, previously blocked in 2021, would affect up to 400,000 HIP members but has been criticized for failing to boost employment and potentially increasing administrative costs.

Although HIP comprises 33% of Indiana’s Medicaid population, it accounts for less than a third of the state’s Medicaid spending, with most funds allocated to nursing home and at-home care for a small percentage of enrollees. Critics argue these measures could disproportionately harm low-income residents while yielding minimal financial savings.