Indiana FSSA asks court to suspend ruling, says state medicaid expansion at risk

The Indiana Family and Social Services Administration said unless a recent federal ruling is halted, the agency will have to transition Healthy Indiana Plan Plus (HIP Plus) members to different packages, which offer less benefits and coverage.

The state filed a motion to prevent a federal ruling from vacating the 2020 approval of HIP. The lawsuit challenged several policies that threaten Medicaid coverage and access. This included POWER account contributions, which were monthly payments required to access HIP Plus, and the program's lack of retroactive coverage.

Advocates said the court’s ruling to vacate approval of the program will prevent people from losing coverage in the future, which furthers the objectives of the Medicaid Act.

But the FSSA said the ruling creates “considerable uncertainty” for the entire program.

FSSA reiterated its claim that the ruling conflicts with state law, which requires POWER account contributions. But state officials have made changes that sidestepped state law before. For example, Indiana removed a policy that would prevent people who failed to pay their POWER account contributions from reapplying to the program, known as the six-month lockout period. It was a policy required by state law, but is no longer a part of the program.

READ MORE: Healthy Indiana Plan lawsuit ruling just in time to prevent Medicaid loss, advocates say

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FSSA said addressing concerns about how the ruling conflicts with state law and making “substantial systems and operational changes” will take the state a year or longer.

The agency also sent a letter to the federal government asking for support in the motion and to “reissue the HIP approval” if the motion is not granted.

POWER account contributions and other forms of cost-sharing were paused during the COVID-19 public health emergency. The state planned to bring cost-sharing back in July. Advocates raised concerns that the requirement would lead to people losing coverage or being disenrolled, but now FSSA said they will remain paused for the foreseeable future.

Other Medicaid programs are not affected by the ruling. Cost-sharing, including copayments and premiums, for the Children’s Health Insurance Program, or CHIP, and MEDWorks will resume as planned.

Abigail is our health reporter. Contact them at aruhman@wboi.org.