Indiana is joining the string of Republican-governed states choosing to expand Medicaid under Obamacare.
Indiana Gov. Mike Pence announced Tuesday morning that the feds have given him the green light on his alternative plan, which would require some enrollees to pay a monthly contribution for coverage and provide a reduced-benefits plan for the poorest. It would also provide health savings accounts for low-income residents to buy private coverage.
Pence had submitted his request to President Obama’s administration last July, seeking a way to obtain billions of federal dollars for his state’s Medicaid program while expanding it in what he calls a market-based way. He joins nine other Republican governors who have chosen to expand Medicaid under the Affordable Care Act, although his plan is the only one requiring participants to make monthly contributions.
“Since the beginning of my administration, we have worked hard to ensure that low-income Hoosiers have access to a healthcare plan that empowers them to take charge of their health and prepares them to move to private insurance as they improve their lives,” Pence said in a statement. “This has been a long process, but real reform takes work.”
Currently about 60,000 low-income Indiana residents are covered under Medicaid, called the Healthy Indiana Plan, or, HIP. Pence says the expansion could cover an additional 350,000 people. It will extend to those earning below 138 percent of the federal poverty level.
Pence said the program will begin on Feb. 2 and the state is accepting applications immediately.
