IndianaSB 1Second Regular Session 124th General Assembly (2026)SenateWALLET

Human services matters.

Sponsored By: Chris Garten (Republican)

Signed by Governor

appropriationsthe houseways and means

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 5 benefits, 2 costs, 8 mixed.

HIP costs: deductible, contributions, ER copays

HIP has a deductible of at least $2,500 a year. The state puts money into your account to cover the gap between your required payments and the deductible. Starting July 1, 2026, you must meet three months of participation rules with documents, and benefits do not start until you pay at least 1/12 of your annual contribution or $10. Ongoing payments are at least 2% of household income or at least $1 a month. Nonemergency ER copays are $8 at or below 100% FPL and $35 above 100% FPL, with a prudent layperson emergency exception. Your total cost sharing each quarter cannot be more than 5% of family income. Vision and dental are only for people who make the required monthly payments.

HIP covers more services and prevention

The Healthy Indiana Plan includes many services: mental health, hospital care, prescription drugs (including certain long-acting medications for addiction), ER visits, doctor care, diagnostics, therapy, disease management, home health, urgent and preventive care, family planning (not abortion), hospice, substance use care, and donated breast milk. HIP cannot add extra limits or costs to mental health or substance use care that are not on other medical care. Preventive services listed in federal law are free. HIP also pays up to $500 each year at no cost for other listed preventive services.

HIP savings for preventive care and renewals

Starting January 1, 2027, HIP uses a 12‑month plan year and renews twice a year. If you paid on time and got required preventive care, unused account money can be matched and carried over to cut what you owe next time. If you missed payments in the past but got the preventive care, you can get discounts up to 50% of the required contribution.

Stronger rules for HIP health plans

HIP managed care plans must process claims, pay providers at least at rates set by the secretary, and cannot deny coverage to someone the office approved. Plans must meet cultural-competency standards, including for non‑English speakers and people with disabilities. At least 87% of HIP funds must pay for care; no more than 13% may go to plan administration and profit.

New rural health fund and oversight

The law creates the Indiana Rural Health Transformation Fund with federal dollars. The fund is continuously appropriated, can earn interest, and pays for allowed uses through December 31, 2032. Starting December 1, 2026, the budget committee must review allotments before money is released. The office reports by June 1 and December 1 each year, listing spending, expected six‑month costs, and whether benchmarks and federal steps are met; reporting ends December 31, 2033.

More HIP checks and tighter frail rules

Starting January 1, 2027, the state checks HIP eligibility at least every six months. It also verifies work-rule compliance at least every three months; you cannot self-attest and an MCO’s statement does not count. Medically frail status is accepted only with certification under federal rules by approved providers, and the definition cannot be expanded.

Stricter Medicaid checks and data matches

Starting July 1, 2026, the state checks federal databases at least monthly (SSA, HHS new hires, USPS, HUD, FBI, Treasury) to verify Medicaid eligibility. Beginning January 1, 2027, self-attestation is not accepted for income, residency, age, household members, caretaker status, or other coverage. The office also reviews state vital statistics and corrections monthly, taxes and workforce data quarterly, and quickly redetermines eligibility if data show changes. It checks lottery and gaming winnings of $3,000 or more monthly and ends coverage if winnings make someone ineligible. From January 1, 2027, nonelderly adults under MAGI rules are redetermined every 6 months; others at least every 12 months.

How far Medicaid can pay back

Starting January 1, 2027, county offices set Medicaid start dates no earlier than one month before the application month for people eligible under IC 12-15-44.5 and no earlier than two months before for others. Beginning July 1, 2026, providers can be paid for care given up to one month before you applied if you are later approved and were eligible when you got care.

Medicaid changes for immigrants: who qualifies

Beginning October 1, 2026, refugees, Cuban/Haitian entrants, and people under the Compact of Free Association can get full Medicaid services like citizens, if federal funding and residency rules are met. People in the U.S. without permission who do not meet 42 U.S.C. 1396b(v)(5) are not entitled to Medicaid. The state counts income of household members who are ineligible due to immigration status when it decides eligibility. The office must verify status and, after a reasonable chance to prove status, refer noncitizens without satisfactory status to federal authorities. Presumptive eligibility forms must include immigration status and cannot be approved until status is verified.

SNAP asset cap and food purchase ban

Beginning July 1, 2026, SNAP uses a $5,000 cap on countable assets for expanded categorical eligibility. Money set aside for funerals and burials does not count. SNAP cannot pay for candy or soft drinks under new legal definitions; the state will seek federal approval if needed. You must be a U.S. citizen, national, or an eligible immigrant, and the state checks status in SSA or SAVE. If a household member is ineligible, the state counts that person’s full income and resources when setting your benefits.

Updated who qualifies for HIP adults

Beginning July 1, 2026, HIP adult eligibility rules change. Work‑hour and activity thresholds are updated, and the dependent child age moves to under 14. New or clarified qualifying groups include pregnancy and postpartum, people in substance use treatment, the medically frail, released inmates, students, Indians and urban Indians, and veterans with total disability ratings. You must meet Medicaid residency rules to qualify.

State sign-off before spending federal funds

Beginning January 1, 2026, state agencies cannot spend federal funds they receive until the state budget agency allots the money, unless another state law allows it. The same rule applies to federal money held by state instrumentalities (state-run entities). Funds must be used for the purpose set by the federal government or by the General Assembly when it appropriates them. These steps can slow when programs or payments start, but they add oversight to how money is used.

HIP waiver funding and program guardrails

If the HIP waiver is revoked or changed so the state cannot comply, the secretary must end HIP; the secretary may also end HIP if the federal match for plan recipients falls below 90%. The secretary can set up alternate coverage using an incremental fee if HHS approves, but HIP cannot run beyond state appropriations. The office may delay a state-plan amendment while negotiating a HIP 3.0 waiver; the plan keeps operating from January 1, 2025 until the waiver takes effect. Starting January 1, 2027, the secretary cannot lower required contributions, deductibles, work hours, or penalties unless federal law requires it and after a written report to the budget committee. The secretary must inform the Indiana Hospital Association before filing a HIP extension or major change and may adopt rules to run HIP and meet waiver terms.

Job help for underemployed HIP members

The Healthy Indiana Plan must refer members who work less than 20 hours a week and are not full-time students to job training and job search services. The goal is to help you find more hours or better pay. There is no new penalty tied to the referral.

Governor now accepts federal funds

Beginning January 1, 2026, only the governor may accept federal funds for the state, except where other law allows. Federal money is treated as appropriated for its federal purpose and is subject to allotment by the state budget agency.

Sponsors & Cosponsors

Sponsor

  • Chris Garten

    Republican • Senate

Cosponsors

  • Aaron Freeman

    Republican • Senate

  • Blake Doriot

    Republican • Senate

  • Brad Barrett

    Republican • House

  • Brett Clark

    Republican • Senate

  • Brian Buchanan

    Republican • Senate

  • Craig Snow

    Republican • House

  • Cyndi Carrasco

    Republican • Senate

  • Daryl Schmitt

    Republican • Senate

  • Ed Charbonneau

    Republican • Senate

  • Eric Koch

    Republican • Senate

  • Gary Byrne

    Republican • Senate

  • Greg Goode

    Republican • Senate

  • James Tomes

    Republican • Senate

  • Jeff Raatz

    Republican • Senate

  • Jeffrey Thompson

    Republican • House

  • Joanna King

    Republican • House

  • Justin Busch

    Republican • Senate

  • Linda Rogers

    Republican • Senate

  • Liz Brown

    Republican • Senate

  • Michael Crider

    Republican • Senate

  • Michael Young

    Republican • Senate

  • Mike Gaskill

    Republican • Senate

  • Randy Maxwell

    Republican • Senate

  • Rick Niemeyer

    Republican • Senate

  • Ryan Mishler

    Republican • Senate

  • Scott Alexander

    Republican • Senate

  • Scott Baldwin

    Republican • Senate

  • Stacey Donato

    Republican • Senate

  • Travis Holdman

    Republican • Senate

  • Tyler Johnson

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 487 • No: 787

Senate vote 2/25/2026

Roll Call 266 on SB0001.04.ENGH.CON01

Yes: 39 • No: 9 • Other: 1

House vote 2/23/2026

Roll Call 302 on SB0001.04.ENGH

Yes: 64 • No: 30 • Other: 2

House vote 2/19/2026

Roll Call 280 on SB0001.03.COMH.AMH017

Yes: 30 • No: 59 • Other: 5

House vote 2/19/2026

Roll Call 283 on SB0001.03.COMH.AMH006

Yes: 28 • No: 62 • Other: 6

House vote 2/19/2026

Roll Call 284 on SB0001.03.COMH.AMH007

Yes: 32 • No: 60 • Other: 3

House vote 2/19/2026

Roll Call 285 on SB0001.03.COMH.AMH012

Yes: 34 • No: 55 • Other: 5

House vote 2/19/2026

Roll Call 286 on SB0001.03.COMH.AMH011

Yes: 30 • No: 64 • Other: 2

House vote 2/19/2026

Roll Call 279 on SB0001.03.COMH.AMH003

Yes: 29 • No: 61 • Other: 4

House vote 2/19/2026

Roll Call 277 on SB0001.03.COMH.AMH002

Yes: 30 • No: 56 • Other: 12

House vote 2/19/2026

Roll Call 278 on SB0001.03.COMH.AMH015

Yes: 31 • No: 57 • Other: 6

House vote 2/19/2026

Roll Call 281 on SB0001.03.COMH.AMH004

Yes: 28 • No: 60 • Other: 6

House vote 2/19/2026

Roll Call 282 on SB0001.03.COMH.AMH005

Yes: 29 • No: 60 • Other: 6

Senate vote 1/22/2026

Roll Call 44 on SB0001.02.COMS

Yes: 38 • No: 8 • Other: 1

Senate vote 1/20/2026

Roll Call 29 on SB0001.02.COMS.AMS001

Yes: 10 • No: 38

Senate vote 1/20/2026

Roll Call 31 on SB0001.02.COMS.AMS003

Yes: 10 • No: 38

Senate vote 1/20/2026

Roll Call 32 on SB0001.02.COMS.AMS006

Yes: 13 • No: 35

Senate vote 1/20/2026

Roll Call 30 on SB0001.02.COMS.AMS002

Yes: 12 • No: 35 • Other: 1

Actions Timeline

  1. Signed by the Governor

    3/4/2026Senate
  2. Public Law 63

    3/4/2026Senate
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the Speaker

    2/27/2026House
  6. Senate concurred with House amendments; Roll Call 266: yeas 39, nays 9

    2/25/2026Senate
  7. Returned to the Senate with amendments

    2/24/2026House
  8. Motion to concur filed

    2/24/2026Senate
  9. Representative King added as cosponsor

    2/23/2026House
  10. Third reading: passed; Roll Call 302: yeas 64, nays 30

    2/23/2026House
  11. Amendment #11 (DeLaney) failed; Roll Call 286: yeas 30, nays 64

    2/19/2026House
  12. Second reading: amended, ordered engrossed

    2/19/2026House
  13. Amendment #12 (DeLaney) failed; Roll Call 285: yeas 34, nays 55

    2/19/2026House
  14. Amendment #7 (Porter) failed; Roll Call 284: yeas 32, nays 60

    2/19/2026House
  15. Amendment #10 (DeLaney) failed; voice vote

    2/19/2026House
  16. Amendment #5 (Porter) failed; Roll Call 282: yeas 29, nays 60

    2/19/2026House
  17. Amendment #4 (Porter) failed; Roll Call 281: yeas 28, nays 60

    2/19/2026House
  18. Amendment #17 (Shackleford) failed; Roll Call 280: yeas 30, nays 59

    2/19/2026House
  19. Amendment #3 (Shackleford) failed; Roll Call 279: yeas 29, nays 61

    2/19/2026House
  20. Amendment #15 (Clere) failed; Roll Call 278: yeas 31, nays 57

    2/19/2026House
  21. Amendment #16 (Clere) failed; Division of the House: yeas 32, nays 59

    2/19/2026House
  22. Amendment #2 (Pack) failed; Roll Call 277: yeas 30, nays 56

    2/19/2026House
  23. Amendment #14 (Barrett) prevailed; voice vote

    2/19/2026House
  24. Amendment #6 (Porter) failed; Roll Call 283: yeas 28, nays 62

    2/19/2026House
  25. Committee report: amend do pass, adopted

    2/17/2026House

Bill Text

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

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