HIP Change Would Allow Insured To Use Health Savings For Year As Income Improves

The state is asking the federal government to allow Healthy Indiana Plan enrollees to keep and spend part of their health savings as they gain employment or make more money.

(Indianapolis, Ind.) - Indiana plans to seek federal approval to begin offering low- and moderate-income people using the Healthy Indiana Plan up to $1,000 over 12 months as they switch to employer insurance or other health care coverage.

The HIP Workforce Bridge program was announced May 15 by Governor Eric Holcomb and the Indiana Family and Social Services Administration.

“When you take a step forward in your career you should also continue to take steps to be healthy,” Holcomb said. “We want Hoosiers to pursue meaningful employment while continuing to see their doctor, take their medicines and maintain their overall health.”

FSSA has applied to the federal U.S. Centers for Medicare & Medicaid Services for a change to its waiver authorizing the HIP program.

The bridge program would allow people to continue to spend up to $1,000 from their HIP health savings accounts as they transition into the workforce. The money would help people pay for premiums, deductibles, co-payments and co-insurance for one year, regardless of whether they get insurance through their employer or pay for it on the insurance exchange.

“Many of us know from experience that even when someone gets a new job, there can still be a period of time when health care costs are a concern,” said FSSA Secretary Dr. Jennifer Walthall. “With HIP Workforce Bridge, we will help fellow Hoosiers move into an exciting and rewarding next phase of their lives without adding the stress of health coverage uncertainty.”

The Healthy Indiana Plan is funded through Obamacare.

According to the FSSA, the waiver change request aligns with full implementation of Gateway to Work in early 2020, a provision requiring some HIP members to work or perform other qualifying educational or volunteer activities to maintain coverage.