Indiana Medicaid

Updated August 2026

Indiana Medicaid is administered by the Family and Social Services Administration (FSSA) through its Office of Medicaid Policy and Planning. The program covers over 2 million Hoosiers — roughly 30% of Indiana's population. Indiana delivers Medicaid through several distinct programs depending on the applicant's age, income, and health status.

HIP work requirements begin January 1, 2027

Starting January 1, 2027, most Healthy Indiana Plan (HIP) members ages 19–64 must complete 80 hours a month of work, school, job training, or volunteering — or qualify for an exemption — to enroll or keep coverage, and HIP renewals for this group move to every six months. FSSA began mailing notices to some members in July 2026 and is holding member town halls through late 2026; a Work Requirements Pre-Screening Tool is available at hipworkscreen.in.gov. Visit in.gov/fssa/hip or your FSSA Benefits Portal account at FSSABenefits.IN.gov for details.

What is Indiana Medicaid?

Indiana is an ACA Medicaid expansion state, but it expanded under a unique Section 1115 demonstration waiver called the Healthy Indiana Plan (HIP), not through standard expansion. HIP has been operating since 2008 in some form and received federal approval as the state's expansion vehicle in 2015. This matters because HIP includes program features no other expansion state uses: a health savings account component called POWER accounts, and two distinct coverage tiers called HIP Plus and HIP Basic.

All Indiana Medicaid coverage is delivered through managed care health plans. There is no fee-for-service option for standard Indiana Medicaid. Members choose a plan or are auto-assigned during enrollment.

Indiana's Medicaid programs at a glance

Healthy Indiana Plan (HIP) — adults 19–64: Indiana's ACA expansion program for adults who are not disabled, pregnant, or elderly. Requires POWER account contributions for HIP Plus status. Income limit: 138% FPL. HIP is operated under a CMS-approved Section 1115 waiver, renewed through 2027.

Hoosier Healthwise — children and families: Medicaid and CHIP coverage for children under 19 and certain low-income families with children. Children are covered up to 250% FPL under Hoosier Healthwise, which includes both Medicaid and CHIP funding.

Hoosier Care Connect — aged, blind, and disabled: Managed care program for SSI recipients and individuals who are aged, blind, or disabled. Not subject to HIP waiver rules. Includes long-term care coordination.

Indiana PathWays for Aging — seniors and LTSS: Launched in 2023, Indiana PathWays for Aging is Indiana's managed care program for Medicaid members who are 60 or older. It integrates acute care and long-term services and supports (LTSS) under a single managed care structure. Enrollment is mandatory for qualifying members.

HIP Plus and HIP Basic: Indiana's two-tier expansion

Indiana's HIP program splits adult expansion coverage into two tiers. HIP Plus provides full benefits, including dental and vision, in exchange for monthly POWER account contributions (similar to a health savings account). HIP Basic provides more limited benefits for members who do not make POWER account payments. Per CMS waiver approval terms, HIP Basic does not include dental or vision for most adult members.

POWER account contribution amounts are income-based — typically 2% of annual household income, with a monthly minimum and maximum. Members below 100% FPL are exempt from required contributions but can voluntarily contribute to access HIP Plus. Members between 100% and 138% FPL are required to contribute or default to HIP Basic.

This structure is unique among Medicaid expansion states. No other state currently operates a mandatory contribution requirement for Medicaid expansion coverage as a condition of enhanced benefits.