Health Insurance in Indiana

Medicaid in Indiana: The Healthy Indiana Plan

Indiana expanded Medicaid in 2015, but not in the typical way. Instead of a straightforward expansion, the state negotiated a federal waiver to create HIP 2.0 (Healthy Indiana Plan 2.0), which covers adults with household incomes up to 138% of the federal poverty level, about $21,600 per year for a single person.

What makes HIP unusual is the POWER Account, short for Personal Wellness and Responsibility. Each member gets a $2,500 deductible plan paired with a $2,500 POWER Account, which works like a health savings account. Members make monthly contributions ranging from $1 to about $27 depending on income. The state and federal government fund the rest.

Members who keep up with their contributions are enrolled in HIP Plus, which includes dental, vision, and no copays. Members who stop paying get moved to HIP Basic, a more limited plan, or lose coverage entirely if their income is above the poverty line. If you get your recommended preventive care, the state doubles your POWER Account rollover for the next year.

Three managed care companies administer HIP: Anthem, CareSource, and Managed Health Services (MHS). MDwise, which previously served HIP members, exited at the end of 2025, so former MDwise enrollees needed to pick a new plan.

What plans cost in 2026

Indiana marketplace premiums increased by an average of 26.3% for 2026 before subsidies, according to the Indiana Department of Insurance. The main drivers are medical cost inflation and, more significantly, the expiration of enhanced premium tax credits that Congress allowed to lapse at the end of 2025.

For people who still qualify for subsidies, marketplace coverage remains affordable. But the subsidy cliff is now back at 400% of the federal poverty level (about $62,000 for a single person), meaning anyone above that threshold pays full price. That can be $600 to $1,000 or more per month for a mid-tier plan depending on age and location.

Indiana had roughly 340,000 marketplace enrollees for 2025. With the subsidy reductions, enrollment is expected to drop for 2026, though exact numbers are still being finalized.

Carriers in Indiana (2026)

Five insurers offer individual marketplace plans in Indiana for 2026, down from six in 2025 after Aetna exited the marketplace nationwide:

• Coordinated Care (Ambetter) has the largest marketplace enrollment in Indiana with over 121,000 members as of 2025. They offer some of the lowest premiums across the state and are available in most Indiana counties. Networks are narrower than Anthem's but cover major hospital systems in metro areas.
• Anthem (BCBS of Indiana) is the second-largest marketplace carrier with about 97,000 members. Anthem has the broadest provider networks in the state and is available statewide. Premiums tend to be higher than Ambetter but the trade-off is access to more doctors and hospitals.
• CareSource covers about 60,000 marketplace members and is popular in the Dayton-Cincinnati corridor that extends into southeastern Indiana. CareSource also administers HIP Medicaid plans, so they have deep experience with lower-income populations.
• Cigna expanded from 8 counties to 15 for 2026 and serves about 8,600 marketplace members. Cigna tends to attract people who want a national carrier with PPO-style plan options.
• UnitedHealthcare has a small marketplace presence in Indiana with about 1,200 members, and actually reduced its county footprint from 9 counties to 5 for 2026.

Key regions

Indianapolis metro

Marion County and the surrounding doughnut counties (Hamilton, Hendricks, Johnson, Hancock, Boone) have the most carrier competition. All five marketplace insurers are available in most of these counties. IU Health, Community Health Network, and Franciscan Health are the major hospital systems. Check which systems are in-network for whichever plan you choose, because IU Health in particular is not in every carrier's network.

Fort Wayne and northern Indiana

Allen County (Fort Wayne) typically has Anthem, Coordinated Care, and CareSource available. Parkview Health is the dominant hospital system in the region. Premiums in the Fort Wayne area tend to be slightly lower than Indianapolis.

Southern Indiana and the Louisville border

Floyd and Clark counties sit across the river from Louisville, Kentucky. Some providers in Louisville accept Indiana marketplace plans, but many do not. If you live in southern Indiana and see doctors in Louisville, verify network status carefully before enrolling.

Rural Indiana

Smaller counties in central and western Indiana may only have two or three carrier options. Anthem typically has the widest rural network. Rural hospitals like those in the Indiana University Health system or Community Health Network affiliates are more likely to be in Anthem's network than in Ambetter's.

Estimate your subsidy

Indiana-specific things to know

HIP and the marketplace interact. If your income fluctuates around the 138% FPL line, you may move between HIP Medicaid and marketplace coverage during the year. Report income changes promptly. If you qualify for HIP, you cannot get marketplace subsidies, and vice versa. The transition between the two programs can cause gaps in coverage if you are not paying attention to paperwork.

Prescription drug costs vary widely by carrier. Indiana has no state-level prescription drug pricing regulation for marketplace plans. Formularies differ significantly between Anthem, Ambetter, and CareSource. If you take specialty medications, compare drug costs across carriers, not just monthly premiums.

Indiana uses the federal marketplace. Enrollment happens through HealthCare.gov, not a state-run exchange. Open Enrollment for 2026 ran from November 1, 2025, through January 15, 2026. If you missed it, you may still qualify for a Special Enrollment Period if you have a qualifying life event like losing other coverage, getting married, or having a baby.

Resources

• HealthCare.gov for marketplace enrollment (Indiana uses the federal marketplace)
• Healthy Indiana Plan (HIP) for Medicaid enrollment and POWER Account information
• Indiana Healthcare Reform for state-level marketplace information and navigator assistance