HIP

How we helped Indiana transform publicly funded healthcare.

Design and implementation of the nation’s first consumer directed Medicaid program in 2007, the Healthy Indiana Plan (HIP), was championed by SVC, now HMA Medicaid Market Solutions (HMA MMS). Our team has remained hands-on, guiding the evolution of HIP policy and implementation, including the introduction of HIP 2.0 under former Governor Mike Pence. HMA MMS’ role with HIP and HIP 2.0 has included not only the design, but also development, including drafting the initial 1115 Demonstration Waiver, supporting the negotiation of the waiver with the Centers for Medicare & Medicaid Services (CMS), participating in implementation efforts (including creating the Request for Proposals), developing the waiver renewal application, and negotiating a financial agreement with the Indiana Hospital Association for the Hospital Assessment Fee program.

Since January 2008, the Healthy Indiana Plan has achieved measurable results as the nation’s first consumer directed program for adult Medicaid participants. Its design applies the structure of a high deductible health plan paired with a health savings account (HSA), known as the POWER account, to promote price- and quality-conscious healthcare consumption among the Medicaid population. HIP includes incentives for members to prevent disease and maintain healthy lifestyles, and has demonstrated strong success in empowering Medicaid participants to be active purchasers of healthcare, and to make informed cost and quality decisions. HIP members use the emergency department at a rate lower than a comparable traditional Medicaid population, use preventive care at a rate similar to a commercially insured population, and report a high level of satisfaction with the program.

For more information, please see the Health Affairs article on the development of HIP.

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