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Indiana state code could threaten health coverage for 754,000 Hoosiers

Indiana has to make a decision as the federal government prepares to cut back its share of Medicaid costs.

INDIANAPOLIS — Insurance coverage for hundreds of thousands of Hoosiers may be at risk in 2025.

That's if the federal government cuts its share of Medicaid costs when the incoming Trump administration takes over next month.

If that's the case, Indiana is especially at risk, thanks to a years-old state code.

"Medicaid removes a lot of that barrier for people who wouldn't go to the doctor because they're afraid of a huge bill," said Eva Bell with Hoosier Action, a nonpartisan group focused on helping everyday people at the center of major issues, including health care.

Medicaid is a joint federal and state program that gives health coverage to some people with low incomes. Right now, nearly 2 million Hoosiers are covered by Medicaid.

"At the end of the day, all Hoosiers, we want to be able to go to the doctor," Bell said.

Currently, the state offers the Healthy Indiana Plan, a Medicaid program covering more than 754,000 Hoosiers. The federal government is responsible for paying 90% of its costs.

Ahead of his upcoming inauguration, however, President-elect Donald Trump has vowed to cut various funding during his time in the Oval Office. Experts predict Medicaid could be a potential target for the chopping block.

"I think the impacts are going to be incredibly detrimental," Bell said, "and we are all going to be impacted by it. Not just those who are on Medicaid. This is the health and future of our state."

Indiana is especially at risk if funds are slashed.

That's because Indiana is one of just nine states with a "trigger law" that says if federal assistance falls below the 90%, the state must go back to an older, lesser version of the Healthy Indiana Plan.

"We don't really know what that is going to look like," Bell said. "What we do know is how detrimental that's going to be because 750,000 is not just a number. That's like the mom in the grocery store with her kids. That's your neighbor."

Bell knows firsthand the benefits of Medicaid.

"I was on Medicaid at one point, and it saved my life," Bell said.

Experts point out the potential cuts to Medicaid are far from a done deal.

In fact, Indiana Governor-elect Mike Braun has said he'd "rather not" cut Medicaid benefits for Hoosiers, according to our newsgathering partners at the Indiana Capital Chronicle.

"I do think there is hope of protecting as many people and keeping them together," Bell said.

In the meantime, Bell asks Hoosiers on Medicaid to check their mail often and contact the Indiana Family and Social Services Administration with any questions.

"At the end of the day, no matter where you stand on the political spectrum, we all want to be able to go to the doctor," Bell said.

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