Feds approve HIP 2.0; coverage will start Feb. 1

INDIANAPOLIS – Federal officials have approved Gov. Mike Pence’s plan to provide health insurance to lower-income Hoosiers, despite provisions that require some participants to pay part of the premium.

Coverage under the expanded Healthy Indiana Plan – dubbed HIP 2.0 – will begin as early as Feb. 1 for individuals who qualify and sign up. As many as 350,000 Hoosiers are expected to qualify.

The plan would apply to all non-disabled adults ages 19-64, who earn between 23 percent and 138 percent of the federal poverty level. That means a maximum income of no more than about $16,000 annually for an individual and $33,000 for a family of four.

Statements on HIP 2.0

U.S. Sen. Dan Coats, R-IN:
“Indiana is leading the way nationally by creating state-based, innovative ideas for governing.”

U.S. Rep. Susan Brooks, R-IN:
“The bipartisan support for this application among Indiana’s Congressional delegation, as well as the vital partnerships provided by our top-notch hospitals, speaks volumes for the quality of this plan.”

Senate Minority Leader Tim Lanane, D-Anderson:
“This will help drive down health insurance premiums paid by insured Hoosiers and eliminate the ‘emergency room as primary care’ approach.”

The U.S. Health & Human Services Administration required only a small change to the plan, according to the Pence administration. That was lowering the minimum monthly contribution to $1 from the $3 for HIP Plus, a plan that includes dental and vision insurance.

The contributions are based on a sliding income scale and can reach as high as $25 per month.

The approval is a big win for Pence, who had resisted expanding traditional Medicaid as called for under the federal Affordable Care Act. After the U.S. Supreme Court ruled two years ago that Congress couldn’t require the Medicaid expansion, some states began proposed hybrid programs that used federal dollars in new ways. But Pence’s HIP 2.0 goes further than others in requiring participants to contribute financially, which led to months of negotiations with federal officials.

Pence announced the approval Tuesday (Jan. 27) during a speech at the St. Vincent Ruth Lilly Conference Center at the Marten House in Indianapolis.

The program will be funded with existing cigarette tax revenue – which supports the existing HIP program – plus hospital assessment fees and Medicaid dollars.

HIP 2.0 will provide three plans for low-income Hoosiers. The options are meant to promote personal responsibility and consumer behavior.

Each plan includes a Personal Wellness and Responsibility (POWER) account that patients use to help pay for deductible expenses.

The three plans are: Employer Benefit Link, Plus, and Basic.

The Employer Benefit Link plan provides financial support to members who wish to access employer-sponsored insurance options. The plan gives Hoosiers greater choices and increases access to providers while encouraging the use of existing private insurance options.

Individuals who are deemed eligible can pick an employer-sponsored plan that they think works best for them. The enrollment in this plan is optional.

The Plus plan is a consumer-driven Medicaid alternative for Hoosiers with incomes below 138 percent of the federal poverty level. It is available to all members who make their monthly POWER account contributions, which range from $1-$25 per month. Members and the state jointly fund a $2,500 POWER account, which members contribute to based on an income scale.

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

Plus offers enhanced benefits, such as vision and dental services and includes comprehensive prescription drug benefits. It also covers maternity services with no cost-sharing during the duration of the pregnancy.

The Basic plan is the default for Hoosiers that fall below the 100 percent of the federal poverty level and fail to make required POWER account contributions. It requires co-payments for all services.

Basic plan members will use the state-funded POWER account to cover their $2,500 annual deductible. There is a reduced benefit package and a more limited prescription drug benefit.

The basic plan will provide incentives for members to be more cost-conscious and to recommend preventive care services.

 

Article writer Ashley Shuler reports for TheStatehouseFile.com

 

 

Lanane pleased governor embraces Affordable Care Act

INDIANAPOLIS – Senate Democratic Leader Tim Lanane (D-Anderson) released the following statement regarding Governor Mike Pence’s announcement accepting federal support to expand health care to more Hoosiers:

“Today is a victory for working Hoosiers.

“For two years, the governor and his allies left 500,000 Hoosiers who earned too much for traditional Medicaid and too little to qualify for subsidies in a coverage gap with nowhere to turn.

“Their feet-dragging saw Indiana lose out on as much as $2 billion in federal support to date, strained rural hospitals and delayed the creation of as many as 30,000 jobs.

“We can put that behind us now, because today the governor embraced the Affordable Care Act’s core principle of expanding health care coverage to more Hoosiers.

“By any name, this is the right thing to do.

“This will help drive down health insurance premiums paid by insured Hoosiers and eliminate the ‘emergency room as primary care’ approach.

“It’s the right thing to do because no one should face bankruptcy as a result of unanticipated medical expenses.

“It’s the right thing to do because we’ve been the island of the uninsured for too long, shipping our tax dollars to cover the uninsured in other states.

“I’m grateful to Gov. Pence for his leadership. He’s shown great courage to buck conventional politics and work with President Obama and his administration.

“Rolling out health care expansion can’t end with the governor’s press conference. The hard work begins now.

“To truly be successful, the governor must lower the barriers to access, reach out to Hoosiers without coverage and do what it takes to extend health insurance to people who’ve been waiting for years.”

 

 

Walorski issues statement on HIP 2.0

WASHINGTON, D.C. -  Rep. Jackie Walorski (IN-02) issued the following statement following Governor Pence’s announcement this morning of approval of the Healthy Indiana Plan (HIP) 2.0:

"Today is a win for low-income Hoosiers across Indiana. HIP 2.0 will offer incentives to thousands of Hoosiers and allow them to decide how they receive their own personal health care," Walorski said. "By ending traditional Medicaid as we know it for all non-disabled adults and funding this program at no additional cost to taxpayers, HIP 2.0 is the first of its kind in the country and it wouldn't have been possible without the leadership of Governor Pence."

 

Walorski represents the 2nd Congressional District in Indiana, where she serves as a member of the House Veterans’ Affairs Committee, House Armed Services Committee, and House Committee on Agriculture.

 

 

Donnelly issues statement on HIP 2.0

WASHINGTON, D.C. - U.S. Sen. Joe Donnelly released the following statement regarding the announcement of an agreement between Gov. Mike Pence and the Obama Administration on the Healthy Indiana Plan (HIP) 2.0 as a means to expand coverage to an estimated 350,000 Hoosiers in need of health insurance.

“Today’s announcement ensures that hundreds of thousands of Hoosiers will have access to affordable health insurance - many for the first time. I am pleased that Gov. Pence and the Obama Administration have reached an agreement to expand coverage to those who would have been left with no other option than to seek health care in the emergency room. I thank the Governor for embracing this opportunity through the Affordable Care Act, so more Indiana families will have access to health insurance.  Today is a good day for Hoosiers.”