Overview

• Indiana's initial estimate for Medicaid expenses fell short by nearly $1 billion, leading to concerns over the state's budget and access to the low-income healthcare program.
• The state moved $525 million from Medicaid to the general fund in July, but is now redirecting $271 million back to Medicaid to address the shortfall.
• An additional $255.2 million will need to be appropriated for Medicaid before July 2024, with a further $457.9 million needed for the following year.
• The flawed forecast was based on data that did not reflect the latest needs of enrollees, with demand for certain categories, such as elderly care, outpacing what was anticipated.
• Medicaid director Cora Steinmetz said the agency is working on proposals for controlling costs, while the number of people enrolled in Medicaid in Indiana has been growing since January 2020, despite the end of pandemic-era protections.