Pence Unveils New State Sponsored Health Care

Updated Thursday at 4:15 p.m.

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

Speaking at Methodist Hospital in Indianapolis today, Gov. Pence unveiled a new state-sponsored health care plan that would cover Hoosiers who earn up to 138 percent 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, 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.

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Gov. Mike Pence unveiled a new state sponsored Health Care plan this morning. The Governor says it’s an attempt to close Indiana’s coverage gap.

They’re calling it HIP 2.0. Pence introduced the second iteration of the Healthy Indiana Plan, which his administration will submit to the federal government as an expansion of Medicaid.

Under the current plan, those with an income equal to or less than 100 percent of the federal poverty level qualify for the coverage. But the Governor says a coverage gap still exists for approximately 350,000 Hoosiers.

In an attempt to make up the difference HIP 2.0 will cover those making up to 138 percent of the federal poverty level.

So called POWER accounts which are partially funded by the individual will remain a part of the plan.
Pence says personal incentive is key to the success of the consumer-driven health care plan.

In a statement, Indiana House Democratic Leader Scott Pelath said the new plan  was long overdue saying democrats have asked the Governor to offer affordable health care to all uninsured Hoosiers for some time.

The plan will now be open for a 30 day public comment period from the state, and an additional comment period at the federal level.