INDIANAPOLIS — Indiana lawmakers advanced legislation Monday aimed at addressing welfare fraud in the state's Medicaid and SNAP programs, but healthcare advocates warn the bill could strip coverage from some of the state's most vulnerable residents.
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Senate Bill 1, a Republican priority, passed out of the Indiana House on Monday with 61 votes in favor and 31 against. The bill must return to the Senate before heading to the governor's desk.
Among the bill's provisions is a requirement that some Medicaid recipients reapply for eligibility every six months. Healthcare advocates say the increased administrative burden could cause eligible Hoosiers to lose coverage, not because they no longer qualify, but because they fall through the cracks of the reapplication process.
"I am someone that engages pretty regularly in healthcare advocacy and tries to stay up to date on what's going on with our state's healthcare infrastructure, yet I also fell through the cracks of re-determination," Ethan Fairbanks, a medical student who was kicked off the HIP 2.0 plan, said.
Fairbanks was receiving healthcare through the Medicaid exchange before losing his coverage. He was able to get help from his family, but said he knows that is not the case for everyone. He feels the state's administrative infrastructure is not equipped to handle the increased paperwork the bill would create.
"We are now in the position where we are about to have significantly more paperwork for the state to go through, but not have the infrastructure in place where we can deal with that paperwork," Fairbanks said.
The bill also increases work requirements for HIP participants from 20 hours per week to 80 hours per month and requires that those requirements be met in the three consecutive months before applying.
Additionally, the bill prohibits the Secretary from expanding the definition of "medically frail" beyond the narrow federal definition and limits who can certify someone as medically frail.
On immigration, the bill establishes strict immigration status requirements for SNAP eligibility and requires the Division of Family Resources to report to the federal government individuals whose immigration status cannot be verified, including household members who are not applying for benefits themselves.
Supporters of the bill argue that the reforms are necessary to ensure the long-term sustainability of the programs and prevent abuse.
"The percent of our Medicare spending a decade ago was nine or 10%. Today, it is 22% of our budget. If we are going to have a system that's going to care for the truly poor among us, we have to have sustainability, and that sustainability is Senate Bill 1," State Rep. Matt Lehman, R-Berne, said on the House floor.
Senate Bill 1 now returns to the Senate before it can be sent to the governor's desk.
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