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Healthy Indiana Plan 2.0: Enhanced Consumer Engagement and Decision-Making Are Driving Better Health

July 2016
Full report Executive summary

Early results from the Healthy Indiana Plan (HIP) 2.0 demonstrate successful use of financial incentives to engage Medicaid members in their healthcare and improve outcomes. For instance, compared to utilization while enrolled in traditional Medicaid, members had lower inpatient and ER use once in HIP.

Following passage of the Affordable Care Act (ACA), states have taken different approaches to Medicaid reform and expansion. Indiana pursued a state-specific model, building on its pre-ACA approach, which incorporates unique aspects such as personal responsibility and financial and non-financial incentives designed to engage beneficiaries in their care.

There are two benefit plans under HIP 2.0 – HIP Plus and HIP Basic. Plus requires monthly contributions, but includes enhanced benefits and no copayments at the time of service, unlike Basic. A large majority of members, even among the lowest income, elected to make monthly contributions for Plus. Plus members accessed primary and preventive care at higher rates than Basic members.


  • HIP 2.0 overview
  • Impact of HIP 2.0 on member engagement
  • Utilization and health outcomes
  • Lessons learned

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