Indiana adds Medicaid work requirement to waiver request

Indiana on Wednesday said it will ask the Trump administration for permission to add a work requirement on Medicaid beneficiaries.

The state posted an amendment to its pending request to renew its conservative Medicaid expansion model known as Healthy Indiana Plan 2.0 for an additional three years. Under the plan, Medicaid enrollees would have to be employed or searching for work in order to be eligible for the program.

The state believes its healthcare costs could go down if the request is approved. “In general, employed individuals are both physically and mentally healthier, as well as more financially stable, as compared to unemployed individuals,” the amendment said.

The state wants to require all able-bodied HIP participants to either work on average 20 hours per week, be enrolled in full-time or part-time education or participate in a job search and training program in the state. The state is accepting comments on the request until June 23.

Several other states have also said they will add similar requirements to their Medicaid programs. Maine announced in April that it would ask the CMS for permission to overhaul its Medicaid program and include a work requirement. Kentucky has already submitted its similar request, and Arizona has announced plans to submit one as well. Florida and Ohio lawmakers are drafting legislation to order their state health departments seek similar waivers that would include work requirement provisions.

HIP 2.0 was developed by CMS Administrator Seema Verma and the agency’s Medicaid Director Brian Neale when they worked for Vice President, then-Gov. Mike Pence, as a consultant and health policy director respectively.

Under Healthy Indiana 2.0 plan, beneficiaries pay premium contributions, have health savings accounts, get incentives for healthy behaviors, and a face a benefit lock-out if they don’t pay premiums.