Bill targeting fraud and abuse in Indiana welfare systems heads to Governor. Some Democrats worry it will impact eligible Hoosiers

Stricter SNAP and Medicaid eligibility requirements are now headed to the Governor, despite prolonged objections from Senate Democrats. The bill came up for its final concurrence vote on Wednesday after a similarly contentious meeting in the House. 

Republicans made the bill a priority and say it will root out waste and fraud in Indiana’s welfare systems. 

They testified that the bill brings Indiana in line with new federal welfare work requirements and eligibility checks, while also inserting checks on immigration status. 

Last year, Indiana reported over 400 million dollars in Medicaid savings, attributing the savings largely to increased eligibility checks and declining enrollment. However, advocates have warned that increased eligibility checks often serve as a barrier to people who still qualify but are unable to navigate the increased paperwork.

Sen. Shelli Yoder (D-Bloomington) said the measure is more punitive than federal changes and will kick eligible Hoosiers from programs. 

“We can align with federal law without trying to outflank it at the expense of our own people,” Yoder said. 

Bill author Sen. Chris Garten (R-Charlestown) said making the program more strict will protect those who need it the most - and protect the program’s long-term stability.

“We brought this bill to make sure that every single dollar goes to a Hoosier who is poor and or disabled,” he said. 

Garten noted that the restrictions in the bill are more stringent than the federal requirements. 

“The reason we're going further is because I personally don't believe Indiana's Medicaid policy should align with states like California and Minnesota,” Garten told lawmakers. 

Another concern for Republicans and Democrats alike are new federal requirements that penalize states for having high error rates in welfare systems. The payment error rate occurs when a state pays out less or more in benefits than a household is supposed to get. 

Based on Indiana’s error rates in both the SNAP and Medicaid systems, Garten said the state could be on the hook for billions of dollars once the federal law takes effect. 

Sen. Fady Qaddoura (D-Indianapolis) said he disagreed with the federal changes but didn’t want to see the state penalized. Still, while Qaddoura initially voted in favor of the bill in committee, he ultimately opposed it, arguing it would not actually bring down the state’s error rates. 

“I don't think the solution in this legislation is what will bring us down. I hope it is,” he said. “I hope it is, but if not, we have to come back next session, and we have to find different solutions to tackle this issue.”

The bill now heads to the Governor. 

Contact Health and Government Reporter Benjamin Thorp at bthorp@wfyi.org