Bloomington's Indiana Legal Services sues state over health insurance

The Bloomington-based nonprofit filed the lawsuit on behalf of Regina Malloy of Ellettsville, who was not enrolled in the Healthy Indiana Plan for more than 175 days, past the federally mandated time for establishing coverage. Without health insurance for six months, Malloy was responsible for full payment of doctor visits, lab fees and an MRI.

“Our client is several thousand dollars in debt as a result of the state’s failure to process her application in a timely manner,” Katherine Wood, staff attorney with Indiana Legal Services, said in a news release. “Ms. Malloy provided everything needed to establish her HIP eligibility when she applied. The state took more than six months to enroll her in the plan, during which time she continued to receive needed medical services without coverage.”

The lawsuit names the Indiana Family and Social Services Administration, the agency that administers HIP, as a defendant. Federal law states that eligibility decisions for HIP are to be made within 45 days after a person applies for coverage, and if a decision is not made within this time or is incorrectly denied, the state must provide corrective retroactive coverage that begins 45 days after the application was submitted.