The Indiana Family and Social Services Administration (FSSA) shared internal estimates Monday indicating that 58,000 Hoosiers enrolled in the Healthy Indiana Plan (HIP) are not currently in compliance with new federal Medicaid work rules. These requirements are set to take effect for new and existing members on January 1, 2027, potentially putting a significant number of residents’ health coverage at risk across Terre Haute, Vigo County, and the wider Wabash Valley.

The FSSA estimates suggest that as many as 12% of current HIP members could lose their health benefits when the agency begins enforcing these new mandates. To maintain coverage, new applicants and existing HIP members will need to demonstrate participation in work, school, volunteering, an apprenticeship, or a work program for a minimum of 80 hours each month. Alternatively, participants can comply by earning at least $580 monthly.

While the official enforcement date is January 1, 2027, the FSSA is utilizing a three-month look-back window. This means that any individual applying for or renewing their HIP coverage in January 2027 should already be in compliance with these new rules starting this month to ensure eligibility and avoid any disruption in their benefits.

The Healthy Indiana Plan is distinct among Indiana’s Medicaid offerings. It is one of five Medicaid plans available in the state but stands as the sole plan subject to these specific federal work rules. HIP is designed for adults aged 19 to 64 whose income slightly exceeds the threshold for traditional Medicaid eligibility. According to FSSA’s Medicaid dashboard, as of August, approximately 461,700 Hoosiers were enrolled in HIP. The plan accounts for about 32% of all Medicaid enrollees in Indiana.

Beyond the immediate non-compliance estimate, state officials in August projected that up to 300,000 Hoosiers could ultimately be subject to the HIP work requirements once all exemptions are factored in. The FSSA is actively conducting a series of town halls across the state to inform residents and answer questions about the impending changes. The next scheduled event is slated for Tuesday at 6 p.m. at the Ivy Tech Valparaiso campus. Exceptions and exclusions from these work requirements are available, though the specific criteria were not detailed in the agency's recent communication.