Yes. The Healthy Indiana Plan is Medicaid. It is the name Indiana uses for the Medicaid coverage it offers to low-income adults between the ages of 19 and 64, and it is funded, overseen, and legally structured as part of the federal Medicaid program.1U.S. Department of Health & Human Services. Who’s Eligible for Medicaid? If a form, provider, or program asks whether you have Medicaid and you are enrolled in HIP, the answer is yes.
Why HIP Doesn’t Look Like Typical Medicaid
Medicaid is a joint federal-state program. The federal government sets the baseline rules, and each state has significant flexibility in how it runs its program. Indiana used that flexibility to build HIP, and it operates under a Section 1115 demonstration waiver approved by the Centers for Medicare and Medicaid Services (CMS).2Medicaid.gov. Healthy Indiana Plan 2.0
A Section 1115 waiver lets a state test alternative approaches to delivering Medicaid coverage. Indiana’s waiver is what allows HIP to require monthly contributions from members, use personal health savings accounts called POWER Accounts, and offer different benefit tiers depending on whether members make those contributions. Those features are unusual for Medicaid, and they are the reason HIP has its own name and its own feel. The money behind the program, the federal oversight, and the legal framework are all Medicaid.
What That Means on Forms and at the Doctor’s Office
Because HIP is Medicaid, you should answer “yes” when a form, application, or intake worker asks whether you have Medicaid coverage. This matters in several practical places:
- Applications for other benefits that ask whether you already have Medicaid or other public health coverage.
- Marketplace health insurance applications, where eligibility for Medicaid generally makes you ineligible for subsidized Marketplace plans.
- Provider intake paperwork that asks about your insurance type.
- Programs that are limited to, or excluded from, Medicaid recipients.
Your HIP card may show the name of your managed care plan rather than the word “Medicaid,” because Indiana contracts with Anthem, CareSource, and Managed Health Services to administer HIP benefits.3Indiana State Government. Managed Care Health Plans That does not change the underlying classification. You are a Medicaid member, with a Medicaid managed care plan.
Who HIP Is the Medicaid Program For
HIP is the Medicaid pathway for low-income adults aged 19 to 64 who are not eligible for Medicare.4Indiana Family and Social Services Administration. FSSA HIP Am I Eligible Eligibility is based on income relative to the federal poverty level, and there is no asset or resource test. The income limit is 138% of the federal poverty level, which for 2026 works out to roughly:5Indiana Family and Social Services Administration. Healthy Indiana Plan Home
- Up to $22,026 per year for a single individual
- Up to $29,870 for a couple
- Up to $45,546 for a family of four
Applicants must be Indiana residents and must be U.S. citizens or hold a qualifying immigration status. Parents and caretakers of children enrolled in Hoosier Healthwise may also qualify. Pregnant women are eligible and receive enhanced benefits through HIP Maternity.4Indiana Family and Social Services Administration. FSSA HIP Am I Eligible
How HIP Fits Into Indiana’s Other Medicaid Programs
HIP is one slice of Indiana Medicaid, not the whole thing. If you fall outside the group HIP covers, you may still qualify for Medicaid through a different Indiana program. Hoosier Healthwise is the Medicaid program for children. Separate Medicaid pathways exist for people over 65 and for people with disabilities. HIP itself does not cover anyone who is eligible for Medicare, which is a different federal program and not part of Medicaid at all.
Within HIP, there are several tiers. The tier you land in affects your costs and some of your benefits, but it does not change the fact that you are enrolled in Medicaid.
HIP Plus
HIP Plus is the most comprehensive tier and is available to members who make their monthly POWER Account contribution on time. It adds dental, vision, chiropractic care, non-emergency medical transportation, and bariatric surgery on top of the standard medical benefits.6Indiana Family and Social Services Administration. Healthy Indiana Plan POWER Accounts The monthly contribution is the member’s only healthcare cost, apart from an $8 charge for non-emergency use of the emergency room.7Family and Social Services Administration. Healthy Indiana Plan – Frequently Asked Questions
HIP Basic
HIP Basic is the default plan for members with income below the federal poverty level who do not make their POWER Account contributions. It covers the same core medical services but drops routine dental, vision, and chiropractic coverage, and it charges copayments at the point of service for most care. Preventive care and family planning visits do not have copayments.
Members with income above the poverty level are not shifted to HIP Basic if they skip contributions. They lose coverage entirely and face a lockout period before they can re-enroll.
HIP Maternity and HIP State Plan
Pregnant members move to HIP Maternity once they report the pregnancy to their health plan. Contributions and copayments stop during the pregnancy and for 12 months after birth, and the tier adds non-emergency transportation and enhanced smoking cessation services.8Indiana Family and Social Services Administration. FSSA HIP Maternity HIP State Plan provides enhanced benefits for members with certain medical conditions requiring more intensive care, with FSSA determining eligibility based on health status.
The POWER Account Is a Medicaid Feature, Not a Separate Program
The POWER Account (Personal Wellness and Responsibility Account) is often what confuses people about HIP’s status. It looks like a health savings account from private insurance, and it has a dollar balance that pays for care. Every HIP member gets one, and $2,500 is loaded into it each calendar year to cover medical expenses.7Family and Social Services Administration. Healthy Indiana Plan – Frequently Asked Questions The state funds most of the $2,500. The member’s share is a monthly contribution between $1 and $20, based on income.6Indiana Family and Social Services Administration. Healthy Indiana Plan POWER Accounts Members who use tobacco pay a surcharge on top of that.
None of that changes the classification. The POWER Account is a design feature Indiana was permitted to build into its Medicaid program under the Section 1115 waiver. It is Medicaid money, administered under Medicaid rules, inside a Medicaid plan.
The Short Version
HIP is Indiana’s Medicaid expansion for adults aged 19 to 64. It runs under a federal waiver that gives it POWER Accounts, monthly contributions, and benefit tiers, which is why it does not look like Medicaid in other states. On any form, in any provider’s office, and for any program that asks about your coverage type, HIP enrollment counts as Medicaid enrollment.