February 10, 2015
On Jan. 27, 2015, Gov. Pence announced that he had reached an agreement with the federal government to allow the state's Medicaid expansion alternative to proceed. The state has received approval to use an updated version of the Healthy Indiana plan, known as “HIP 2.0.” The proposal provides a two-tiered coverage system: one for residents living above 100 percent of the federal poverty line, and one below. Those above the line will have to contribute to the cost of coverage while those under the line will have free access to basic health coverage.
The announcement may prove of interest to employers. Specifically, individuals with income between 100 and 133 percent of the FPL who may have previously qualified for Medicaid may instead qualify for federal subsidies to purchase health insurance through an exchange. Since the employer mandate penalty (affecting employers with over 50 employees) is tied to individuals who qualify for a subsidy unless the individuals are Medicaid-eligible, employers with 50 or more employees would have potentially been exposed to more penalties than if the state had not pursued Medicaid expansion.
Coverage for those who qualify began Feb. 1, 2015.
Gov. Pence Announcement » HIP 2.0 FAQs »