National Health Plan Could Put Indiana Program In Jeopardy

INDIANAPOLIS -- A health insurance program run by the state of Indiana could be in jeopardy if a national health care reform plan passes.

The Healthy Indiana Plan, better known as HIP, allows those who have dependents and aren't otherwise eligible for an employee-sponsored plan to take part in a state-supported plan.

After losing her job, Beth Ruble needed to find new health insurance.

"The least expensive I could find was $350 a month. So it came down to literally I can give up my home and live in my car, which was paid off, and have health care insurance," Ruble said. "Or, I can live on my own and do without."

Ruble was eligible for HIP, a program that Indiana began last year. It lets her put some of her own money in a health savings account -- about $67 a month for her – to cover deductibles. The state pays for pretty much the remainder of expenses, including co-pays and prescriptions.

"The bill is very simple. It's one page, that's all it is," she said.

The program has been popular with those who are eligible.

"It's one-of-a-kind. It's the only program like this in the nation," said Seema Verma, a state policy consultant. "We've had over 150,000 people apply for the program."

There is concern among some that national health care reform could force an end to Indiana's program.

"We're looking at that very closely," Verma said. "A lot of the budget estimates are not including programs like this."

Ruble said she's satisfied enough with Indiana's program to suggest that the U.S. should consider using it as a model.

"I just hope the federal government doesn't replace what is already in place," she said.

Eligibility requirements for Indiana's program are adults 19-64 with income restrictions. They must have been uninsured for at least the past six months and not be eligible for an employer-sponsored health plan.

More Info: Indiana HIP