Indiana: 58,000 could lose Medicaid coverage for Healthy Indiana Plan

(MIRROR INDY) — Indiana officials in a news release said more than 58,000 people could lose insurance through the Healthy Indiana Plan in 2027 because they are not meeting the state’s new Medicaid work requirements. 

The Healthy Indiana Plan is a Medicaid program that covers low-income adults ages 19 to 64. Per an August report, about 487,000 Hoosiers are enrolled.

Indiana legislators passed a bill this year that requires people on the HIP program to prove they are working, or have certain exceptions, to keep their medical coverage. Starting in January 2027, members will have to submit documentation that shows they are working, volunteering or going to school for at least 80 hours each month. The requirements in Indiana are part of a nationwide push from the Trump administration, which further restricted who can be on Medicaid with the “One Big Beautiful Bill.”

Specific requirements include:

• People must document a total of 80 hours of working, volunteering, going to school, or attending an apprenticeship per month; they can also pull hours from a combination of these activities.
• People who attend school or an apprenticeship at least half time are covered and do not have to track their hours.
• People can also meet the requirement through an income threshold by making at least $580 per month; seasonal workers must have an average monthly income of $580 over the past six months.

Advocates in the past have pointed to data showing that about 70% of adults on Indiana Medicaid are working. They say the requirement to document work hours will cause unnecessary red tape for people on Medicaid, who may be kicked off due to paperwork errors or confusion. 

The Indiana Family and Social Services Administration, the state agency that’s rolling out the new requirements, has asked people to review the changes and set up a benefits portal online to submit documentation. 

You can enter your information on the state’s screening tool to see if you must meet the work requirements or qualify for an exemption.

Exemptions include:

• Pregnancy.
• Under 26 years old and formerly in foster care.
• Members of Native American tribes.
• Parents or caregivers of children under the ages of 13.
• Caregivers for people with disabilities.
• Veterans with a 100% disability rating.
• People who are in jail or were released within the last 90 days.
• People in a drug or alcohol treatment program.
• People who are already meeting work rules for SNAP or TANF programs.
• People who meet the definition for “medically frail,” which includes physical and intellectual disabilities, substance use disorders and serious mental health conditions.

If you need help reapplying to Medicaid or navigating these changes, reach out to a free healthcare navigator. 

If you are kicked off Medicaid, you have the right to appeal. You do not need an attorney to do so, but having one can be helpful. You can contact Indiana Legal Services for free representation.

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Mirror Indy reporter Mary Claire Molloy covers health. Reach her at 317-721-7648 or email maryclaire.molloy@mirrorindy.org. Follow her on X @mcmolloy7.