State seeks to grow health plan once thought doomed

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Indiana is talking to federal officials about expanding its health plan for low-income adults, despite Gov. Mitch Daniels'
statements that the federal health care overhaul would kill it.

Indiana human services chief Anne Murphy has sent a letter to the Centers for Medicare and Medicaid Services saying the Healthy
Indiana Plan is "the natural vehicle" for expanding Medicaid coverage to Indiana residents in 2014. The Associated
Press obtained a copy of the letter.

The letter marks a reversal of the Daniels' administration prospects for HIP following the federal health care overhaul
passed in March.

Daniels at the time described HIP as a "program whose days are numbered" and asked Murphy to begin planning its
phaseout.

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