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.

Normally, about 1 in 5 people have state assistance. Applications have increased 75 percent since mid-March, state officials reported Monday.

"Gateway to Work" is billed as a community engagement opportunity to help connect people with better employment opportunities. But some worry the changes will result in Hoosiers losing health insurance.

The state's Medicaid program, called the Healthy Indiana Plan, requires members to submit paperwork to the state every 12 months to verify their eligibility for Medicaid.

The most recent national data show the state holding at 8 percent of Hoosiers without medical insurance.

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.

The federal government has granted a one-month extension to Indiana's Medicaid program, known as the Healthy Indiana Plan, or HIP 2.0, which was set to expire this month.

On Friday, the Indiana Medicaid Drug Utilization Review Board agreed to remove prior authorizations for preferred versions of the addiction treatment medication buprenorphine.

A Kaiser Family Foundation analysis released this week shows Indiana would receive 3 percent less under the block grant system than it currently does under the Affordable Care Act.