STATE OF INDIANA Timothy N. Brown, lvl.D. P.O. Box 861 HOUSE OF REPRESENTATIVES Crawfordsville, IN 47933 THIRD FLOOR STATE HOUSE INDIANAPOLIS, INDIANA 46204 Website: www.in.gov/h4 l E-mail: H4 l @iga.in.gov COMMITTEES Public Health: Chair Education Family, Children and Human Affairs Interstate and International Cooperation Rules and Legislative Procedures November 17, 2011 The Honorable Donald Berwick Administrator Centers for Medicare and Medicaid Services Department of Health and Human Services 200 Independence Avenue, S.W. Washington, D.C. 20201 Dear Administrator Berwick: As a member of the Indiana General Assembly and original author of legislation to create the Healthy Indiana Plan (HIP), I write in support of the State oflndiana's application for renewal of its 1115 Medicaid Waiver to extend the demonstration for HIP for calendar year 2013-2015. The waiver renewal application includes modifications to HIP to comply with new federal regulations as well as a request for HIP to serve as the coverage vehicle for newly-eligible individuals under the Affordable Care Act Medicaid expansion. HIP currently covers approximately 41,000 individuals but the State of Indiana's actuary anticipates nearl y 500,000 Hoosiers will be newly eligible for Medicaid in 20 I 4. Our State legislature passed and Governor Mitch Daniels signed SEA 461 , which calls for HIP to be the coverage vehicle. While Governor Daniels' Administration has been working with CMS over the past year to find a path toward approval of this request, I understand they have met resistance. If CMS does not approve the application in a timely manner, State officials have expressed they will need ample time to notify current enrollees that HIP coverage will be cancelled by December 31, 2012. Conversely, if CMS approves the waiver, the State will need sufficient time to expand and build on HIP's success to cover the enormous Medicaid expansion expected in 2014. When we drafted the 01iginal legislation to create the program, the POWER account was designed to be the cornerstone of HIP. Individuals are required to make monthly contributions to the POWER account based on their ability to pay, and the State funds the remainder. Under the State of Indiana's waiver application, emollees will be required to make a minimum contribution of $ 160 amrnally, but individuals will not have to pay more than fi ve percent of income towards health care, per CMS rnles. <!Congre~~ of tbr ~ntteb ~tate~ ~aSfJington, 1J9qc 20510 November 4, 2011 The Honorable Kathleen Sebelius Secretary Department ofHealth and Human Services 200 Independence Avenue, S.W. Washington, D.C. 20201 Dear Secretary Sebelius: As Members ofthe Indiana Congressional Delegation, we write in support ofthe State of Indiana's application for renewal ofits 1115 Medicaid Waiver to extend the demonstration for the Healthy Indiana Plan (HIP) for calendar year 2013-2015. The waiver renewal application includes modifications to HIP to comply with new federal regulations as well as a request for HIP to serve as the coverage vehicle for newly-eligible individuals under the ACA Medicaid expansion. HIP currently covers approximately 4 1,000 individuals but the State ofIndiana's actuary anticipates nearly 500,000 Hoosiers will be newly eligible for Medicaid in 2014. The State legislature passed and Governor Mitch Daniels signed SEA 461 , which calls for HIP to be the coverage vehicle. While Indiana officials have been working with CMS over the past year to find a path toward approval ofthis request, we understand they have met resistance. IfCMS does not approve the application in a timely manner, State officials have expressed they will need ample time to notify current enrollees that HIP coverage will be cancelled by December 31, 2012. Conversely, if CMS approves the waiver, the State will need sufficient time to expand and build on HIP's success to cover the enormous Medicaid expansion expected in 2014. The cornerstone ofHIP is the POWER account. Individuals are required to make monthly contributions to the POWER account based on their ability to pay, and the State funds the remainder. Under the State ofIndiana's waiver application, enrollees will be required to make a minimum contribution of$160 annually, but individuals will not have to pay more than 5% ofincome towards health care, per CMS rules. Enrollees have demonstrated a willingness and ability to pay this minimal amount and, as a result, make quality and cost conscious health care decisions. In fact, data provided by the State shows that 97% ofHIP members made their required POWER account contributions during the first two years ofthe program. This fact and additional data cited below make the case that HIP participants are taking greater personal responsibility for their own health, as emphasized by the program: • During the first 12 months of enrollment non-emergency utilization of the ER by HIP enrollees decreased by 14.8%. • HIP generic drug utilization is 80% (comparable commercial population: 65%). • 80% of HIP enrollees complete the preventive services required for POWER account rollover. • Enrollees are required to complete an annual redetermination. 85% of HIP enrollees submitted their redetermination packets on-time in the first two years of the program. This number rose to 96% in demonstration year three. • 94% of HIP participants surveyed said they are satisfied with the program, and 99% of respondents indicated that they would re-enroll in the program. We join the State of Indiana in looking forward to a positive outcome for Hoosiers in need of affordable health care and hope that CMS will approve the State's waiver application as soon as possible. Sincerely, /Dick Lugar/ /Dan Coats/ Richard G. Lugar Dan Coats United States Senator United States Senator /Larry Bucshon/ /Dan Burton/ Larry Bucshon Dan Burton Member of Congress Member of Congress /Mike Pence/ /Todd Rokita/ Mike Pence Todd Rokita Member of Congress Member of Congress /Marlin Stutzman/ /Todd Young/ Marlin Stutzman Todd Young Member of Congress Member of Congress Enrollees have demonstrated a willingness and ability to pay this minimal amount and, as a result, make quality and cost conscious health care decisions. In fact, data provided by the State shows 97 percent of HIP members made their required POWER account contributions during the first two years of the program. This fact and additional data cited below make the case that HIP participants are taking greater personal responsibility for their own health, as emphasized by the program: • During the first 12 months of enrollment non-emergency utilization of the ER by HIP enrollees decreased by 14.8 percent • HIP generic drug utilization is 80 percent (comparable commercial population: 65 percent) • 80 percent of HIP enrollees complete the preventive se1vices required for POWER account rollover • Enrollees are required to complete an annual redetermination. 85 percent of HIP enrollees submitted their redetermination packets on-time in the first two years of the program. This number rose to 96 percent in demonstration year three. • 94 percent of HIP participants surveyed said they are satisfied with the program, and 99 percent of respondents indicated they would re-enroll in the program. I am pleased with the results of the HIP program and join Governor Daniels' Administration in supporting a positive outcome for Hoosiers in need of affordable health care. I ask CMS to approve the State's waiver application as soon as possible. Sincerely, /Tim N. Brown, M.D. / Timothy N. Brown, M .D. State Representative TB/pd November 28, 2011 1 American Square • Suite 1900 Indianapolis, Indiana 46282-004 317/633-4870 • 317/633-4875 fax Cindy Mann www.ihaconnect.org Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, Maryland 21244-1850 Dear Administrator Mann: On behalf of the Indiana Hospital Association (IHA) and our more than 160 member hospitals throughout Indiana, I urge you to grant the State of Indiana's request to renew the 1115 Medicaid waiver for the Healthy Indiana Plan (HIP). IHA supported the legislation that authorized HIP four years ago, and we remain very supportive of this program today. We appreciate this opportunity to support its extension through calendar year 2015. Without question, HIP provides health care security to thousands of Hoosiers who would otherwise have no source of coverage. What is uniquely important about HIP, however, is the manner in which coverage is made available. Using a thoughtful approach that takes into consideration the financial circumstances of its enrollees, HIP encourages personal initiative and responsibility with respect to healthcare decision- making. This approach directly contributes to the patients' receipt of quality and cost- effective health care services while generating high levels of satisfaction among enrollees with the program. We would also note with enthusiasm the provision in the State's waiver renewal application that would discontinue the diversion of federal Medicaid disproportionate share (DSH) dollars effective January 1, 2013. Allowing these DSH funds to become available to Indiana's hospitals while preserving HIP will provide needed financial assistance without reducing coverage. In conclusion, the IHA believes HIP has been a success. Indiana and its citizens will be well served if HIP is soon extended through calendar year 2015. Sincerely, /Doug Leonard/ Douglas J. Leonard, FACHE President 7330 Shadeland Station, Suite 200 Indianapolis, Indiana 46256 eCommunity.com November 30, 2011 Cindy Mann Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, Maryland 21244-1850 Dear Administrator Mann: As a participant in Indiana's healthcare delivery system, I write in support of the State of Indiana's 1115 Medicaid waiver renewal request to extend the demonstration for the Healthy Indiana Plan (HIP) in calendar years 2013-2015. HIP is an innovative Indiana program that has had great success in providing low-income Hoosiers with meaningful, consumer -driven healthcare coverage.