Gov. Holcomb, Secretary Azar Announce Federal Approval To Continue And Enhance The Healthy Indiana Plan

Indiana Governor Eric J. Holcomb joined U.S. Health and Human Services Secretary Alex Azar at Sidney & Lois Eskenazi Hospital to announce that Indiana has gained approval to continue its successful alternative to traditional Medicaid—the Healthy Indiana Plan (HIP)—through December 2020, allowing the state to continue health coverage for more than 400,000 low-income adult Hoosiers.

In addition to continuing HIP for nearly three years and making several administrative adjustments to help members, federal approval allows Indiana to enhance HIP with up to $80 million in annual funding to support efforts to attack the opioid epidemic. Indiana will now expand access to a range of addiction treatment options—inpatient, outpatient and residential—for both HIP and Medicaid members to help ensure Hoosiers get the specific treatment needed for their disease. The approval also adds provisions that connect HIP members to available jobs or education opportunities.

“A decade after it launched, Indiana’s HIP program has become the national model for a state-led, consumer-driven healthcare program that meets citizens’ needs, provides choices and improves lives,” Gov. Holcomb said. “This approval continues coverage for hundreds of thousands of Hoosiers and unlocks funding to expand resources to help people struggling with addiction.”

The Healthy Indiana Plan was created in 2007 under Gov. Mitch Daniels. The program was expanded in 2015 by then Gov. Mike Pence with a federal waiver to implement HIP as an alternative to traditional Medicaid expansion.

“Today’s approval is the result of the hard work of Gov. Holcomb, his team and our team at the Centers for Medicare & Medicaid Services, and serves as a testament to Indiana’s ongoing commitment to improving the lives of its Medicaid beneficiaries,” said Secretary Azar. “We look forward to collaborating with Indiana on this next evolution of HIP, which serves as another example of the Trump Administration’s support of state-led efforts and innovative reforms to make our HHS programs really work for Americans.”

Based on input from Hoosiers who rely on HIP, the state asked for changes to Indiana’s HIP waiver to make it easier for members and health care providers to effectively use the program. The waiver also allows Indiana to expand its existing Gateway to Work initiative to connect eligible members to job training, education and community engagement activities. The Gateway to Work initiative formalizes connections between HIP members and Indiana employers to help fill thousands of available jobs in high-demand industry sectors and improve quality of life for participating members.

“HIP is a program built with Hoosiers in mind and has improved lives over the past decade, including the 75 percent of HIP members who receive preventative care to avoid major, costly health conditions,” said FSSA Secretary Jennifer Walthall, M.D., M.P.H. “We continue applying innovative methods to improve health outcomes and quality of life for HIP members.”