In Indiana there is a lot of focus on the current Medicaid expansion. The current Governor does not want to expand Medicaid without using the Healthy Indiana Plan for that expansion.
This could have a huge impact on Federal Health Insurance Exchange for Hoosiers. Under the new law if you qualify for Medicaid you cannot qualify for exchange subsides. So if the health insurance law is using the Medicaid expansion as the bench mark then we could have a lot of Hoosiers that cannot get coverage.
This is a serious issue that really no one is talking about. Next year the individual health insurance premiums will skyrocket. The premium increase is going up because of the additional coverage’s and the guaranteed issue market. No one will be declined a policy. This will have a huge impact on premium.
Most people will not be able to afford an individual policy without subsidies. The majority of Indiana residents that do not have access to group benefits will have to purchase a policy through the federal exchange. If you qualify for subsidies, then the most you will pay is 9.5% of household income for a health policy. Some people will qualify for as low as 2% of household income plus subsidies for actual medical claims. The subsidies are based off of Federal Poverty Level.
If an Individual is making 133% of federal poverty level, then under the exchange they would be eligible to only play 3% of household income. In this example that would be around $36 a month. Now if this individual qualifies for Medicaid then would not get the subsidies. It would be very difficult for this person to pay $300 a month in premium when they are making $1,200 a month.
The federal Health insurance exchange should adapt to Indiana not expanding Medicaid, but if it uses the Medicaid expansion as the bench mark, then a lot of people will go without.