Gov. Mike Pence has told U.S. Health and Human Services Secretary Sylvia Burwell that he wants to maintain Indiana's "freedom and flexibility" under any expansion of Medicaid.
Pence said his meeting with Burwell on Wednesday went well and that the two sides are still negotiating.
Pence spent the day in Washington, D.C., seeking federal approval of his proposed state-run alternative to traditional Medicaid to expand health care coverage for low-income residents.
If approved, the program would cover up to 458,000 low-income residents without health insurance.
The Republican governor is scheduled to meet with members of the state's congressional delegation on Thursday before returning to Indiana.