Repealing The Affordable Care Act Could Eliminate HIP 2.0

Feb 4, 2015

A repeal of President Obama’s signature health care law could have consequences for Indiana’s recent expansion of the Healthy Indiana Plan.
Credit Healthy Indiana Plan / http://www.in.gov/fssa/hip/

Indiana’s Republican congressional delegation is expected to vote this week in favor of repealing the Affordable Care Act — only a week after applauding federal approval of HIP 2.0.

A repeal of President Obama’s signature health care law could have consequences for Indiana’s recent expansion of the Healthy Indiana Plan.

“Technically speaking, if the Affordable Care Act were to be repealed, then the federal funding for HIP 2.0 would go away with it,” Seth Freedman, associate professor at Indiana University’s School of Public and Environmental Affairs says.

Though Gov. Mike Pence’s Medicaid expansion was designed by the state, it’s still provided for by the Affordable Care Act, and the federal government is footing the bill.

The federal government is funding 100 percent of the program’s costs for the first three years. Their contribution drops to 90 percent by 2022.

Freedman says all those federal dollars would disappear, leaving an estimated 600,000 Hoosiers covered by HIP 2.0 uninsured until a replacement for the Affordable Care Act is implemented.

Rep. Todd Young, R-IN9, says he doesn’t think repealing the president’s health care law will leave people in the lurch, and replacing the Affordable Care Act is exactly what Young says he wants to do.

“My objective would be to ensure that all Americans have access to affordable insurance and have access not just in the short term, but in the longer term as well,” he says.

President Obama has said he will veto the repeal attempt if it reaches his office.