Health Care Reform

The Future of Health Care Reform

The future of health care reform is unclear, but there is no doubt that federal changes to the Affordable Care Act (ACA) will have major implications on Indiana and could affect the future of HIP 2.0 coverage expansion and Medicaid reimbursement for hospitals. 

Now more than ever, we must be engaged in the political process.


Maintaining Coverage

  • Despite the flaws in the ACA, more than 450,000 Hoosiers now have health coverage under the law. At a minimum, we ask that Congress protect those individuals by maintaining their pathways to coverage.
  • Whether the program is called a block grant, per capita caps or some other system, it must not leave states like Indiana with fewer resources to care for our must vulnerable populations.
  • It should be noted that if Medicaid funding is cut as part of reform, there are potential negative implications beyond the health care sector. Medicaid cuts are likely to reverberate throughout state budgets, impacting K-12 education, public safety and more.

Preserving HIP 2.0

  • With respect to the Healthy Indiana Plan (HIP) 2.0, we are concerned with provisions in the AHCA that would reduce the federal funding for this vital program. This program is also supported by tobacco taxes and fees that all hospitals pay.
  • However, if federal matching funds to states for coverage expansions like HIP 2.0 are cut from today’s levels, the program would be phased out under triggers established in Indiana current law. This would mean hundreds of thousands throughout our state could become uninsured.
  • There has been bipartisan support for HIP since its inception a decade ago, and it demonstrates that states can successfully extend coverage in an innovative and fiscally responsible manner.
  • Giving states much needed additional flexibility will allow new models like HIP to emerge that bend the long-term cost curve and improve outcomes.

IHA Health Care Reform Principles

  • To the extent possible, preserve delivery reform and pathways for population health efforts to continue.
  • We should strive to increase, not decrease, the number of Hoosiers who have meaningful health care coverage.
  • Further payment cuts are not sustainable and would have dire consequences.
  • We must continue to break down silos within health care.
  • We support aligning payment with incentives, but such methods should be monitored closely to ensure the desired result is achieved and equitable.
  • Reducing regulation and administrative burden is essential.
  • We should continue investing in the health care system of the future.
  • Hospitals should help develop replacement policies and be proactive in finding solutions.