Senate panel advances Medicaid expansion plan

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The Indiana Senate Public Health Committee is advancing a proposal to expand Medicaid using the state's health savings account plan.

The panel voted 9-3 Wednesday afternoon to request that the federal government allow Indiana to use its Healthy Indiana Plan to cover the roughly 400,000 residents who would qualify under an expansion.

The measure now heads to the Senate Appropriations Committee.

The House Health and Provider Services Committee is expected to take up a similar proposal later Wednesday.

A June decision by the U.S. Supreme Court allows states to opt out of the Medicaid expansion called for in the federal Patient Protection and Affordable Care Act, but most of Indiana's neighbors have indicated they are likely to grow their programs anyway, putting pressure on Hoosier lawmakers to act.

The state's actuary has estimated a full expansion alone would cost roughly $2 billion over seven years. The Indiana Hospital Association released a study Monday placing that cost at about $500 million.

But lawmakers say they don't know yet how much it could cost to use the Healthy Indiana Plan.

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