Hip 3.0? Indiana lawmakers eye Medicaid eligibility to control costs: Report

Indiana lawmakers are considering significant changes to the Healthy Indiana Plan (HIP), a Medicaid program for adults, in response to a projected $5 billion increase in Medicaid costs over the next four years and a $1 billion budget shortfall discovered in 2023. Senate Bill 2 proposes capping HIP enrollment at 500,000 people, down from nearly 700,000, while adding stricter eligibility checks and work requirements. Advocates fear these measures could harm vulnerable populations, including those with disabilities and substance use disorders, forcing some to go without insurance or rely on costly emergency care, reported the Indystar.com.

While proponents argue the changes are necessary to curb Medicaid’s unsustainable growth and prioritize funding for those on waitlists for services, critics warn of the human impact, particularly on low-income Hoosiers and rural communities. The bill also seeks federal waivers to implement these changes, while halting Medicaid advertising, a move Senate Democrats argue could further limit access to affordable health care. Opponents acknowledge the need for system improvements but caution against actions that could penalize those legitimately relying on Medicaid due to systemic mismanagement.