HIP 2.0 Gets Federal Stamp Of Approval, Begins Feb. 1

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By: Alexander McCall

January 27, 2015 — Gov. Mike Pence announced Tuesday the federal government has approved of the state’s proposed expansion of the Healthy Indiana Plan.

Pence unveiled the plan, known as HIP 2.0, in May as an alternative to traditional Medicaid expansion, but it was met with months of delays at the federal level because it does not meet all the requirements of Medicaid.

“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 and prepares them to move to private insurance as they improve their lives,” Pence said in a statement. “This has been a long process, but real reform takes work.”

Pence touted the program’s commitment to “personal responsibility,” which includes accounts participants pay into as a means of helping paying for insurance.

Enrollment in the expansion will begin Feb. 1, and will cover 350,000 uninsured Indiana residents.

Hoosiers can begin applying to the program immediately.

The expansion will be funded with federal dollars, cigarette tax revenues and hospital assessment fees.

HIP 2.0 also introduces HIP Link, which gives low-income residents an option to receive assistance in purchasing private insurance through their employers.

Members of the current Healthy Indiana Plan will be automatically transitioned to the new plan without any breaks in coverage.

In an e-mailed statement, Sen. Dan Coats, R-Indiana, praised the approval of HIP 2.0.

“The approval of HIP 2.0 is good news for thousands of low-income Hoosiers and a testament to the effectiveness of the Healthy Indiana Plan,” Coats said. “Indiana is leading the way nationally by creating state-based, innovative ideas for governing.”

Rep. Todd Young, R-Indiana, also applauded the expansion.

“For those of us who have long argued for block-granting Medicaid to allow states to deliver services tailored to the needs of their citizens, HIP 2.0 is now an important proof-of-concept that Medicaid can be more efficient than a one-size-fits-all approach,” Young said in a statement.

Gretchen Frazee and Brandon Smith contributed to this report.


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