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Governor Pence Meets with HHS Secretary Burwell to Discuss HIP 2.0

The following statement was issued Wednesday by the office of Governor Mike Pence:

Indianapolis – Today, Governor Mike Pence met with Health and Human Services Secretary Sylvia Mathews Burwell in Washington, D.C. to discuss the state’s proposal to expand the Healthy Indiana Plan (HIP) through HIP 2.0.

"I appreciate the willingness of Secretary Burwell to have a serious and substantive discussion about our proposal to advance consumer-driven healthcare in Indiana through the Healthy Indiana Plan,” said Governor Pence.

The Governor acknowledged that, while differences remain, "The State of Indiana is determined to continue to work in good faith to make our case for expanding the Healthy Indiana Plan to more Hoosiers. We are hopeful that the federal government will give us the freedom and flexibility to empower Hoosiers to take charge of their health and wellness in a fiscally responsible manner.”

The core elements of HIP 2.0 which distinguish the program from Medicaid include:

  • Personal Wellness and Responsibility (POWER) accounts, modeled after Health Savings Accounts, for all members
  • Required monthly POWER account contributions or co-pays for services
  • Incentives for managing health care costs and a focus on preventative care
  • Benefits that are aligned with commercial health plans
Indiana submitted its HIP 2.0 waiver application on July 2, 2014, following a 30-day formal public notice and comment period. HIP 2.0, a consumer-driven health care coverage program for low-income adults, builds on Indiana’s history of consumer-driven health care and would replace traditional Medicaid for all non-disabled adults. The plan adds choices for Hoosiers that further promote HIP’s consumer-driven model, while providing new incentives for members to take personal responsibility for their health.

The Healthy Indiana Plan began in 2008 under a five-year waiver from the federal government, and it was continued by two one-year waivers granted in 2012 and 2013. It is the nation’s first consumer-directed plan for Medicaid recipients. Since passage of the Affordable Care Act, Indiana has sought to continue the program through a series of discussions and waiver requests with CMS, a division of the U.S. Department of Health and Human Services.

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