Uninsured

Both the percentage and the number of people without health insurance increased in 2006. The percentage without health insurance increased from 15.3 percent in 2005 to 15.8 percent in 2006 and the number of uninsured increased from 44.8 million to 47.0 million.

What Happens to the Uninsured?

Medicare

Medicare provides hospital and medical insurance to persons age 65 and older, disabled persons under 65 who receive payments under Social Security or the Railroad Retirement program, and people of all ages with chronic kidney disease.

Medicaid

Medicaid is financed from state and federal funds and provides medical assistance to persons who are eligible for federal cash assistance. Medicaid also may be available to persons who have enough income for basic living expenses but cannot afford to pay for medical care. Even though state participation is optional, all 50 states participate. However, because states establish their own eligibility criteria, there are large state-to-state variations in coverage and eligibility.

COBRA

Under federal law, group health plans sponsored by employers with 50 or more employees are required to offer continued coverage for you and your dependents for 18 month after you leave your job. Under the same law, following an employee’s death or divorce, or child no longer being an eligible dependent, coverage may be continued for up to 36 months. If you wish to continue your group coverage under this option, you must notify your employer within 60 days of loss of coverage. You must also pay the entire premium, plus a two percent administration charge.

Healthy Indiana Plan

In 2007, Governor Mitch Daniels proposed raising the state’s cigarette tax to help fund health insurance for the uninsured. The General Assembly subsequently passed the Healthy Indiana Plan (HIP).

About 562,235 Hoosiers are eligible for this plan. That includes uninsured, non-disabled parents of Medicaid/CHIP children from 22%-200% federal poverty level (FPL); pregnant women up to 200% FPL ; and approximately 41,000 childless adults under 200% FPL (Roughly 11% of childless adults)

Participants must be: Uninsured for 6 months, and not eligible for employer-sponsored health insurance.

The plan structure provides a POWER Account valued at $1,100 per adult to pay for medical costs. Contributions to the account are made by the State and each participant (based on ability to pay). No participant will pay more than 5% of his/her gross family income on the plan.

A basic commercial benefits package once annual medical costs exceed $1,100 is also provided. Finally, coverage for preventive services up to $500 a year at no cost to participants is included in the plan.