Healthy Indiana Plan (HIP)

The Healthy Indiana Plan Demonstration provides health insurance coverage (HIP coverage) to uninsured adults with family incomes up to 200% FPL. HIP coverage is available to custodial parents of Medicaid and Children's Health Insurance Program (CHIP) children who are not themselves eligible for Medicaid, and childless adults. HIP coverage consists of a high-deductible health plan and an account styled like a health savings account called a Personal Wellness and Responsibility (POWER) Account. Persons who elect to participate in HIP coverage must make a monthly contribution to their POWER Account, which is determined on a sliding scale based on income. Persons who drop HIP coverage are refunded at least a portion of their unused contributions. In addition to providing HIP coverage, the Demonstration also provides mandatory capitated managed care benefits to Medicaid eligible parents, caretaker relatives, children, and pregnant women through the Hoosier Healthwise program. Funding for the expanded coverage comes from a reduction in total payment adjustments to disproportionate share hospitals (DSH), and from anticipated savings from the families with children and pregnant women populations. In addition to expanding coverage, the State hopes to encourage newly covered individuals to stay healthy and seek preventative care, give them greater control of their health care decisions and incentivize positive health behaviors, make individuals aware of the cost of health care services, and encourage provision of quality medical services.