FOR IMMEDIATE RELEASE
Contact: Lance Gideon, Senior Press Secretary
Lance.Gideon@iga.in.gov
317-234-9221
STATEHOUSE (June 18, 2025) — A bill authored by State Sen. Chris Garten (R-Charlestown) to reform the state's Medicaid program was ceremonially signed into law today by Gov. Mike Braun.
Senate Enrolled Act 2 works to get Medicaid spending under control by creating a more fiscally responsible program and ensuring only those who qualify for the program benefit from it. Medicaid is a multi-billion-dollar program operated as a federal-state partnership to provide health care coverage to qualifying individuals.
"Indiana's Medicaid costs have been rising at an unsustainable rate in recent years, jeopardizing the program for those who need it most," Garten said. "With Medicaid spending increasing by $5 billion in the last four years, the state's ability to fund other important needs like K-12 education and public safety is at risk. That's why the reforms in SEA 2 are so important."
The legislation requires FSSA to enter into data-share agreements with other agencies so Medicaid can conduct more thorough and more frequent checks of member eligibility. It also requires FSSA to create new standards for hospitals that offer presumptive eligibility, which is a process that allows hospital patients to get short-term health care coverage based on answering a few questions from hospital staff. Under SEA 2, hospitals that repeatedly offer presumptive eligibility to individuals who do not qualify for Medicaid will lose their authority to do presumptive eligibility in the future.
"If a person isn't truly eligible for coverage, Hoosier taxpayers should not be on the hook for paying for that person," Garten said. "We want to shore up the sustainability of this program for the truly needy by not improperly paying for those who don't qualify."
SEA 2 also seeks to make common-sense conservative reforms to Medicaid's Healthy Indiana Plan (HIP). HIP is the Medicaid plan designed primarily for low-income adults with no disabilities.
SEA 2 requires FSSA to seek federal approval to cap HIP enrollment in the future if state costs exceed available funding and to institute a work requirement for able-bodied, working-age adults on HIP. Recipients would be required to work or volunteer for 20 hours per week unless they qualify for a "good cause" exemption, such as being a caregiver for a young child, pregnant, or in a substance abuse treatment program.
"The goal of HIP is to provide short-term assistance to Hoosiers when they fall on hard times," Garten said. "It is not intended to be a long-term solution for health care coverage and the state can no longer afford the program to continue at current spending levels."
Garten noted that the changes to HIP contemplated in SEA 2 cannot take effect until they are approved by the Trump administration's Department of Health and Human Services.
"Fiscal integrity is crucial to ensuring our Medicaid program is able to cover those who truly need it," Garten said. "With this legislation, I believe Indiana's Medicaid program will find ways to be more financially responsible and ensure our most vulnerable Hoosiers have access to the health care they need."
Sen. Garten can be reached by filling out a "Contact Me" form online at www.IndianaSenateRepublicans.com/Garten or by phone at 800-382-9467.
PHOTO CAPTION: State Sen. Chris Garten (R-Charlestown, first row second from the right) attends the ceremonial bill signing of Senate Enrolled Act 2 today.
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State Sen. Chris Garten (R-Charlestown) represents Senate District 45,
which includes Clark County and portions of Floyd County.
Click here to download a high-resolution photo.
