Indiana Subsidy for Private Insurance ‘Doesn’t Go Very Far’

Indiana on May 29 received CMS approval for a Section 1115 waiver demo that allows residents moving from Medicaid expansion to commercial plans to spend up to $1,000 of funds stored in quasi-HSA accounts on insurance premiums or cost-sharing expenses. State officials describe the plan as a way to help former Medicaid members whose income has grown stay insured. However, experts say that the program, which is related to Indiana’s push for Medicaid work requirements, isn’t likely to improve access to coverage for those eligible.

The program allows former members of the Medicaid expansion program, the Healthy Indiana Plan (HIP), who have joined an employer-backed or individual exchange commercial plan to spend up to $1,000 in Medicaid funds on expenses including premiums, copays, prescription drugs and other cost sharing for the 12 months after their transition from Medicaid.

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