Indiana wins federal OK for state-run Medicaid alternative

Indiana wins federal OK for state-run Medicaid alternative

INDIANAPOLIS (AP) - Indiana has received federal approval to expand health coverage to about 350,000 uninsured residents through a state-run program that supporters say increases participant responsibility.

Gov. Mike Pence announced Tuesday that the Centers for Medicare and Medicaid Services had approved the state's request for the plan his administration calls HIP 2.0.

It builds off the Healthy Indiana Plan that began under former Gov. Mitch Daniels. That initial program enrolls some 60,000 low-income residents who will be moved into HIP 2.0.

Consumers enrolled in HIP 2.0 will make optional contributions and have a hybrid health savings account.

Pence in July submitted his HIP 2.0 proposal to federal officials as an alternative to a traditional Medicaid expansion.

Costs will be covered with revenue from Indiana's cigarette tax, hospital fees and federal Medicaid funding.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)