Politics & Government
4:55 pm
Thu May 15, 2014

Pence Proposal Replaces Medicaid with HIP 2.0

The Pence Administration is seeking a waiver to replace Indiana’s Medicaid program with a new version of the Healthy Indiana Plan. Pence says HIP 2.0 will feature three new options for uninsured Hoosiers.

Listen to Jimmy Jenkins story on Gov. Pence's new Healthy Indiana Plan proposal.

Speaking at Methodist Hospital in Indianapolis today, Governor Pence unveiled a new state-sponsored health care plan that would cover Hoosiers who earn up to 138% of the federal poverty limit.

Like the original Healthy Indiana Plan, HIP 2.0 asks individuals to pay into a health savings account. Those who do will be eligible for a new top tier plan called HIP PLUS.

However, in keeping with minimum Federal requirements, the state will not deny someone coverage if they fail to make payments into their so-called POWER account.

Instead, Governor Pence says a lower tier default plan called HIP Basic will be made available.

“Members of this plan must make co-pays and will receive fewer benefits – if they move from the HIP Plus plan to the HIP Basic Plan – they must return to making their contributions to their power accounts to HIP Plus again,” Pence said.

The governor says he hopes things like dental and vision coverage and a sliding scale based on income will incentivize consumers to pay into their power accounts.

A third option called HIP Link also exists which will allow individuals to use their power account dollars to take part in available employer offered health care plans.

The Pence administration will submit their waiver application at the end of June.