One of the many components of the Patient Protection and Affordable Care Act (PPACA aka Health Care Reform) is each state must decide if they will implement the Medicaid expansion. The goal is to expand coverage to state residents that aren’t covered by or eligible for one of the many programs currently offered.
Indiana already has several program options in place, including the Healthy Indiana Plan (HIP), but eligibility can be complicated and varies based on the individual program guidelines. There is much disagreement between parties as to which program is the most cost-effective for the state and how to provide the coverage needed by over 400,000 low-income Hoosiers.
Why Should You Be Concerned?
Some studies show that expanding the current HIP would cost the state less than the Medicaid expansion and would give the state more control over how the money is spent. However, if the coverage is provided through Medicaid expansion there is federal aid available for the next several years, but may end up costing the state more over the long term. Also, with the Medicaid option, there is less control over the program. So, what is the best fiscal decision for Indiana residents?
Lawmakers have asked for more time to work with the federal government agencies to outline, address, and approve how HIP could be used to meet the Medicaid expansion requirements and still receive federal funding.
Most citizens do not realize all of the taxes, provisions, and costs that are tucked into the Health Care Reform legislation. It’s important to know that many provisions will have a significant impact on insurance carriers, employers, employees, states, and individuals.
To learn more about what employers need to know about Health Care Reform, register to attend our Human Capital Summit on Health Care Reform. We will deep dive into the nuances of health care reform and the variables necessary for you to make educated decisions specific to your organization.
