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FSSA Halts HIP Enrollment After Reaching Capacity

By Brandon Smith

Posted July 24, 2014

Indiana is cutting off applications for the Healthy Indiana Plan, the health insurance program for low-income Hoosiers, after it has reached capacity based on the funding allocated to the program.

The state pays for the program through the tobacco tax, limiting its size to a monthly average of 45,000 people. Earlier this year, enrollment was below that average.

However the program has now swelled to about 52,000 people.

When the federal government reauthorized HIP last year, it required Indiana to lower the income eligibility ceiling from 200 percent of poverty (about $47,000 a year for a family of four)  to 100 percent (roughly $23,000 a year).

That allowed the state to open the enrollment up because some people on the plan were no longer eligible and were instead directed to the federal health care exchange for coverage.

But after reaching capacity, the Family and Social Services Administration announced it will only enroll eligible Hoosiers who sent in applications before today.

FSSA spokesman Jim Gavin says there's a remote chance more Hoosiers could enroll later this year.

"If something would happen where enrollment would dip significantly to where we saw that the average was going to be projected to come in below 45,000, it's conceivable but not probable that we would open the program back up," Gavin says.

The state is asking the federal government to approve HIP 2.0, which would significantly expand the program beginning next year using federal Medicaid dollars.

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