CHICAGO - Indiana's recent decision to expand its Medicaid program under the new federal health care law is positive for the state's hospitals and could prompt other states to expand their own programs, according to Fitch Ratings.
Indiana in January became the 28th state to expand Medicaid after the federal government agreed to let it modify the program to require residents to contribute to their health care. Gov. Mike Pence, who pushed for the change, said it's necessary that Hoosiers have some responsibility for their health care.
In a brief Feb. 4 comment, Fitch said the action would be good for Indiana health care providers.
"The expansion of Medicaid eligibility will benefit many of Indiana's hospitals," Fitch said, adding that an estimated 350,000 Hoosiers will be eligible to enroll.
"The Indiana plan is unique in that most participants will be required to pay a small monthly premium as well as co-pays for certain services. Fitch believes this agreement could hasten expansion in a handful of Republican-controlled states that have proposed premium payments like the plan in Indiana."
Repeating warnings from earlier reports, Fitch said that hospitals located in states who have opted out of expansion will likely face "increasing financial challenges in 2015 and beyond."s
