We learned this month that nearly 300,000 Hoosiers have signed up for the new Healthy Indiana Plan, known as HIP 2.0.
Indiana Gov. Mike Pence won approval to use HIP 2.0 as Indiana’s unique way of expanding Medicaid under the federal health care law.
Most people using HIP 2.0 pay a modest sum each month into a health savings account, instead of getting everything free. User contributions range from $1 to $26 per month. So far, they have averaged $10.99 per month, the state says.
Approximately 70 percent of HIP 2.0 participants are paying something toward their health insurance. The other 30 percent have lower incomes and are not required to pay.
The success rate shows that making a small payment does not scare people away from signing up for HIP 2.0, as some critics feared. One health outreach worker said Hoosiers have been surprised when they learn how affordable it is to get HIP.
The plan provides health coverage for low-income Hoosiers ages 19-64. Income limits for participating are $16,436 a year for an individual, $22,246 for a couple or $33,865 for a family of four.
Now, the state is promoting HIP Link, a creative plan for Hoosiers who need help buying health insurance through their employers.
People who are eligible for health insurance through an employer do not qualify for HIP 2.0, even if they meet the income limits. But often, those workers can’t afford to participate in their workplace programs, either, if they have to pay part of the premiums.
HIP Link helps employees by reimbursing them directly for most of their payroll deductions for health insurance.
Employers have to volunteer to participate in HIP Link. But it sounds like a win-win decision. An employer makes the deduction from a HIP Link employee’s paycheck as usual. Most of the dealings with state government involve the employee.
Getting more employees enrolled in health insurance could be advantageous for rates, not to mention the bonus of having a healthier work force.
Hoosier employers should check out HIP Link. It might even lead to a better national health care system.
It’s possible that next year, Americans will elect a president who will try to dismantle the controversial federal health care law nicknamed Obamacare. If that happens, Indiana’s HIP 2.0 and HIP Link offer good models for designing a replacement system.
Along with requiring people to make small investments in their insurance, Indiana’s health plan gives them incentives to stay healthy and be cost-conscious. Those features could look attractive to leaders who dislike the present federal law.
If Hoosier employers get behind HIP Link, the rest of the nation might see something worth copying.