Feds grant short-term extension to Indiana health program

Under the Healthy Indiana Plan (HIP), beneficiaries pay for medical expenses out of a health savings account funded by their own contributions. The state and federal government then split expenses above a certain threshold.

The agreement announced Tuesday comes with new conditions for HIP eligibility, according to reports.

Some current enrollees will lose their coverage and receive recommendations to buy insurance on the state's new marketplace. Others will gain coverage under HIP.

Indiana officials are seeking to use the program as the foundation for a one-of-a-kind Medicaid expansion in the future.