The majority of the expansion states have elected to expand coverage within their current Medicaid program. More recently, States are looking to leverage enhanced federal funding as an opportunity to make reforms within their current Medicaid program and to advance alternatives to traditional Medicaid. Arkansas, Iowa, Michigan, and Pennsylvania have all pursued expansion through innovative approaches with 1115 demonstration waivers. These and other states have modeled program reforms on many aspects of the Indiana HIP program design. SVC supported implementation of new waivers in Iowa and Indiana
In 2007, SVC principal Seema Vermas served as architect of the Healthy Indiana Plan (HIP) and remained directly involved in HIP program policy and operational developments including the recently approved HIP 2.0 program under Governor Mike Pence. SVC's role with HIP and HIP 2.0 included not only the design but also development including creating the Request for Proposal, drafting the initial 1115 waiver, supporting the negotiation of the waiver Indiana HIP program design with the Centers for Medicare and Medicaid Services (CMS), supporting implementation efforts, developing the waiver renewal application and negotiating a financial agreement with the Indiana Hospital Association for the Hospital Assessment Fee program.
For more than seven years, the Healthy Indiana Plan has achieved measurable results as the nation’s first consumer-directed program for adult Medicaid participants. Its design applies the structure of a high deductible health plan paired with a health savings account (HSA), known as the POWER account, to promote price and quality conscious healthcare consumption among the Medicaid population. HIP includes incentives for members to prevent disease and maintain healthy lifestyles, and has demonstrated strong success in empowering Medicaid participants to be active purchasers of healthcare and to make informed cost and quality decisions. HIP members use the emergency department at a rate lower than a comparable traditional Medicaid population, use preventive care at a rate similar to a commercially insured population, and report a high level of satisfaction with the program.
For more information on the development of HIP, the Health Affairs Article on the development of HIP is a good source of information.