HIP Plus members will keep coverage as Indiana's appeal moves forward

A federal judge has granted a motion that will allow Healthy Indiana Plan, or HIP, members to maintain their HIP Plus coverage while the state appeals a federal ruling. The program’s approval was vacated by the judge in June, but the state has been working to appeal the ruling.

The ruling came after a lawsuit said several HIP policies limit coverage and go against the objectives of the Medicaid Act. One of those policies included POWER account contributions, which are monthly payments required to access the version of HIP with better coverage, HIP Plus.

In July, the Indiana Family and Social Services Administration said unless the ruling was halted, the agency will have to transition HIP Plus members to different packages that don’t include better coverage. It filed a motion to prevent the federal ruling from taking effect. The agency said the ruling created “considerable uncertainty” for the entire program.

The judge granted a limited stay Tuesday based on an agreement reached between the parties. The stay means the approval of the program will not be vacated while the ruling is being appealed. The state has agreed to not collect POWER account contributions while that appeal is being considered.

READ MORE: Advocates offer advice for Medicaid members navigating federal ruling's effect on HIP
 

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This means HIP members enrolled in HIP Plus will maintain that coverage and new members will also be enrolled in HIP Plus without needing to make the monthly payments to maintain it.

The Centers for Medicare and Medicaid Services agreed it will not find Indiana out of compliance for suspending the payments for the duration of the stay.

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 resumed as planned in July.

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