Attention Current Marketplace Members

The Healthy Indiana Plan (HIP) is expanding and your Marketplace plan may be affected. The State of Indiana is expanding the HIP program under the HIP 2.0 proposal. If your income now qualifies you for HIP, you may no longer be eligible for a subsidy for your Marketplace plan. If you continue to collect that subsidy after the launch of HIP, you may owe money back on your taxes. You must act immediately to ensure you avoid paying a tax penalty. See below information on the steps you need to take. 


What is HIP 2.0?
HIP 2.0 is the State of Indiana’s plan to improve and expand the successful Healthy Indiana Plan (HIP). HIP 2.0 will replace traditional Medicaid in Indiana for all non-disabled Hoosiers ages 19-64. It will cover Hoosiers with incomes up to 138 percent of the federal poverty level, which for 2014 is approximately $16,105 annually for an individual or $32,913 for a family of four. Current Marketplace members who meet these income guidelines will need to disenroll from Marketplace but they can enroll in HIP.

In HIP, members make monthly contributions to a “POWER Account.” This account is used to help pay for your health care services, similar to a Health Savings Account. The State also will put dollars into your POWER Account, based on your income.

In HIP, there are two plans with different benefits. See the differences below.

HIP Plus

  • Affordable monthly contributions
  • No copayments, except for the inappropriate use of the ER
  • Dental and vision coverage, plus other enhanced benefits
  • Better prescription drug benefit

HIP Basic
  • Copayments for all services, except preventive care and family planning
  • No dental or vision coverage
  • HIP Basic plan is only for members with incomes below 100% of the federal poverty level who fail to make their POWER Account contributions under HIP plus.

To avoid a tax penalty, you must update your Marketplace account. To do this:
  • Go to HealthCare.gov and log in to your account or call the Health Insurance Marketplace call center at 1-800-318-2596.
  • Select "apply or renew." Review and update your application information, then save and submit - even if there are no changes.

You must take these actions even if you have already updated your Marketplace account this year if you want to avoid a possible tax penalty. 

Once you have completed these steps, you will get a notice from the Marketplace that your information is being sent to Indiana Health Coverage Programs. This means that you are being considered for eligibility for the HIP Plus program. 

If you are eligible for HIP:
  • You will receive a bill from your health plan for your monthly POWER account contribution.  Paying this bill as soon as possible will guarantee you access to comprehensive coverage, without a gap in coverage.  
  • You will also need to contact healthcare.gov at 1-800-318-2596 to cancel your Marketplace coverage. Use your HIP coverage start date to choose when to end your Marketplace plan and avoid a gap in coverage.
  • You will not face a tax penalty provided that you cancel your Marketplace coverage prior to beginning HIP.
If you are not eligible for HIP:
  • You will receive a denial notice from HIP and you will keep the health insurance coverage you purchased on the Health Insurance Marketplace. Do not make any changes to your Marketplace plan until you know if you are eligible for HIP or not.
  • You will not face a tax penalty.


If you have questions about HIP, you can call 1-877-GET-HIP-9 (1-877-438-4479) or you can visit hip.in.gov

To learn more about the HIP under MDwise, visit our HIP member page. We hope you choose to stay with MDwise under the HIP 2.0 program.