Federal and state officials are negotiating whether Indiana can expand health care coverage using its Medicaid alternative, the Healthy Indiana Plan.
The federal government has extended Indiana's pilot health insurance program for another year, while the state looks for other ways to expand health care.
Some legislators say they worry Indiana will miss out on the first year of federal funding for healthcare expansion.
The state wants to continue using the Healthy Indiana Plan, or HIP, as its health insurance program for low-income Hoosiers not covered by Medicaid.
The bill directs the state to continue negotiations with the federal government, seeking a way to compromise on Medicaid expansion.
Rep. Ed DeLaney's proposal would have expanded Medicaid if the federal government did not approve the state's request to use the Healthy Indiana Plan.
The budget proposed Friday does not include money for Medicaid expansion in Indiana.
They propose instead to continue using the Healthy Indiana Plan.
Gregg says a hybrid system, in which the state and federal government co-run the exchange is the best option that will help reduce the state’s costs.