Health Care Insurance Proposal Announced by Governor Pence


Published 05/16 2014 02:22PM

Updated 05/16 2014 02:32PM

Big health care news for Hoosiers as Governor Mike Pence announced a health care insurance proposal, HIP 2.0 which will expand the Healthy Indiana Plan to replace traditional Medicaid for all adults without disabilities.

Governor Pence's office estimates that 350,000 Hoosiers fall into an insurance coverage gap.  Meaning, they are not covered by Medicaid, but are currently below the poverty line and can't afford insurance.

"I was meeting working Hoosiers that were telling me for all intents and purposes, even though they had a job they couldn't afford health insurance and they fell in that coverage gap."

Governor Pence says expanding the Healthy Indiana Plan is the best way to fix the problem.

"We have a track record where Hoosiers have demonstrated an enthusiasm for the Healthy Indiana Plan.  They're made contributions to their health saving accounts, they become choosier shoppers in healthcare, they are using preventative medicine more."

Based on income, some people will pay a monthly fee or portions of a $2500 deductible.

"This is not a handout, this is a hand up.  People that are out working and have a job but can't afford health insurance themselves or their family, don't want a handout from government, but they would like a helping hand."

The plan will not affect Hoosier taxes.  It will be paid for by Indiana's existing cigarette tax revenue and Hospital Assessment Fee Program, in addition to federal Medicaid funding.

Now this insurance expansions is just a proposal and it needs to go through a process before it is approved.  There will be a 30 day formal comment period where Hoosier are encouraged to voice their opinion. 

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