Medicaid, a government-provided free health insurance program, is for low-income adults, those with disabilities who cannot work and others who meet specific criteria. Under the Affordable Care Act, states also have the right to expand Medicaid based on income alone.

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.

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.

The commonwealth is one of 10 states, including Indiana, that have requested approval from the federal government for such a provision.

Kentucky got the green light from the federal government Friday to require people who get Medicaid to work. It's a big change from the Obama administration, which rejected overtures from states that wanted to add a work requirement.

Ten states, including Indiana, have submitted proposals to add a work requirement to their Medicaid plans.

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

Michigan-based McLaren Health Care announced Thursday that it's signed a definitive agreement to acquire MDwise a nonprofit insurer serving more than 360,000 Indiana residents who are on Medicaid.