March 9, 2007

Indiana Latest State to Take on Health Coverage

The state of Indiana has embarked on a market-based approach to expanding the number of Hoosiers who have health coverage.

• A bill before the Indiana legislature would help provide the working poor with affordable health coverage.
   
• Indiana Gov. Mitch Daniels's plan got a boost this week from Health and Human Services Sec. Mike Leavitt.  Sec. Leavitt visited Indiana and praised the approach Indiana's taking on health coverage.
   
• The innovative proposal looks to private insurance.  But it needs a federal Medicaid waiver to seal the deal.

Indiana is determined to use private sector health coverage in its solution. That's a hallmark of the program and a sign the program is likely to succeed.

• The "Healthier Indiana" plan will help citizens who've been uninsured for at least six months.  It's available to those earning less than 200 percent of the poverty level.
   
• A state program will help these working people to buy private health insurance.  Their premiums would amount to no more than 5 percent of income.
   
• Insurance would provide up to $300,000 in annual coverage. It would give people $500 worth of preventive care.  Those getting health insurance would also have a $1,100 health savings account.  If the HSA contains money at the end of the year, people can use the funds for other things.

Obtaining a federal Medicaid waiver is critical. That will enable better usage of Indiana's public funds.

• The waiver will give the state the flexibility it needs to ensure a successful program. That's key not only to Indiana's particular plan, but as precedent for other states' leadership in addressing the uninsured issue in constructive ways.
   
• Sec. Leavitt said he is "very optimistic" that Indiana will get its waiver.

Health care leaders applaud Gov. Daniels' and Indiana's creativity in extending affordable health coverage.  When Indiana gets its Medicaid waiver, this will help other states wanting to develop their own customized solutions to this multifaceted problem.  The states have been referred to as "laboratories of democracy."  That is becoming the case with health care, and Indiana deserves credit for its private-sector-oriented innovation.