The new program will allow HIP participants to use up to $1,000 from their health savings accounts for up to one year after they get a new job that comes with health insurance.

The state was notified the U.S. Centers for Medicare and Medicaid Services finished reviewing its application this week. The next step is a 30-day federal public comment period which is now open.

Indiana has applied for a 10-year extension of its Medicaid health insurance program, known as the Healthy Indiana Plan. This fairly routine move sparked passionate public commentary on Tuesday afternoon.

The Indiana Family and Social Services Administration has temporarily suspended work requirements for people on the Healthy Indiana Plan.

Hoosiers who receive health insurance through the Healthy Indiana Plan, or HIP, may have to start logging work hours.

The state of Indiana has proposed a new program to help transition people from its Medicaid expansion program, HIP 2.0, to commercial health insurance.

Last month Indiana became the second state to receive federal permission to add a work requirement to its Medicaid expansion program.

If successful, the lawsuit could mean the end of federal support for Indiana's Medicaid expansion, which is funded through the Affordable Care Act.

The changes are part of last week's federal authorization, which allows Indiana to continue its Healthy Indiana Plan for another three years.

Alex Azar, head of the U.S. Department of Health and Human Services, announced the federal approval Friday in Indianapolis.