Indiana House passes Senate Medicaid bill; bill heads back to Senate for final approval

Chicago Tribune

08-04-2025

The Indiana House passed the Senate Medicaid bill Tuesday, largely along party lines, and the bill will go back to the Senate for final approval because it was amended in the House.
The bill passed 66-28, with State Rep. Wendy Dant Chesser, D-Jeffersonville, breaking with Democrats to vote in favor of the bill and State Rep. Ethan Manning, R-Cass, breaking with Republicans to vote against the bill.
Senate Bill 2 – authored by Sen. Ryan Mishler, R-Mishawaka – places restrictions on Medicaid, including work requirements on an insurance program for Hoosiers with a median income and between ages 19 to 64.
The bill also gives the Office of the Secretary of Family and Social Services various requirements, including those to report specified Medicaid data to the Medicaid oversight committee. The office must also prepare and present a report to the budget committee about the enforcement of a five-year Medicaid outlook period.
If passed, the bill will also require the office to establish performance standards for hospitals that create eligibility requirements and action for when hospitals do not comply with standards.
The bill has been amended by the House Public Health Committee to remove a 500,000 cap on the Medicaid program. Last week, the House Ways and Means Committee amended the bill further to allow an Indiana resident enrolled in or attending an accredited educational program full-time to be eligible for the plan.
The House Ways and Means Committee also amended the bill further to allow the secretary of Indiana's Family and Social Services office to advertise or market participation in the Medicaid program. The office can also reimburse medical providers at the appropriate Medicaid fee schedule rate for some medical claims before the beginning of benefits.
State Rep. Brad Barrett, R-Richmond, said Senate Bill 2 'closes loopholes to stop waste in this space,' as well as tightening up the policy for preemptive eligibility, tracking improper payments, and other components.
Medicaid has been scrutinized at the federal level, Barrett said.
'Doing nothing is not acceptable in this space. We were really forced with doing something this legislative session,' Barrett said.
During second reading in the House on Monday, Democratic members presented 10 amendments to the bill, but each amendment failed.
State Rep. Ed DeLaney, D-Indianapolis, proposed an amendment to state that the Family and Social Services secretary may not use a wait list for a Medicaid waiver to reduce total enrollment in the waiver.
State Rep. Robin Shackleford, D-Indianapolis, filed five amendments, including changing the language from $3,000 to $20,000 of lottery or gambling winnings to result in someone being kicked off the Medicaid program. Shackleford also proposed an amendment to ensure that anyone on the Medicaid program as of July 1 may not be counted in any limits to the program.
Shackleford said Tuesday that the state wasn't forced to do something with Medicaid but rather ensure that Hoosiers have health insurance.
Referencing the state's $1 billion Medicaid shortfall, Shackleford said the state made a mistake in hiring a company that couldn't accurately calculate how many Hoosiers require Medicaid.
State Rep. Maureen Bauer, D-South Bend, said there is a misconception about Medicaid recipients committing fraud, but in reality, Medicaid recipients are the victims of fraud.
'Instead of addressing the real fraud, Senate Bill 2 adds to the administrative costs that already burden our Medicaid system,' Bauer said.
State Rep. Victoria Garcia Wilburn, D-Fishers, said she disagreed with the notion that the state has to take action on Medicaid. In committee, Garcia Wilburn said legislators learned that the cost per person on Medicaid is $667 per year, which covers preventative and emergency care.
'This bill will not save our state any money. Quite frankly, it has the potential to do harm, and we'll lose billions of dollars in federal match money over the next two years,' Garcia Wilburn said.