Many Indiana residents are opening their Indiana Health Insurance bills this month to an unpleasant surprise.
With the Affordable Care Act open enrollment period now closed for most states, including Indiana, higher premiums are taking effect for thousands of people who buy coverage through the Marketplace. The increase comes after extra federal subsidies, first added during the COVID-19 pandemic, expired at the end of last year.
State officials estimate that premiums for Marketplace plans in Indiana have risen by about 20 percent on average. For many families, that jump could mean paying hundreds more each month for the same coverage.
Nationally, policy experts warned that some households could see their monthly premiums more than double, rising from an average of around $888 in 2025 to nearly $1,900 this year if Congress did not renew the subsidies. Indiana consumers are seeing similar increases.
More than 200,000 Hoosiers who currently rely on ACA plans are expected to feel the impact. Some are already weighing whether they can afford to keep their coverage at all.
“This is a wake-up call for families who are already stretched thin,” said Sarah Thompson, a health policy analyst with the Indiana Institute for Working Families. “Without these subsidies, basic health care becomes out of reach for a lot of people.”
Neighboring states are dealing with the same issue. Kentucky, which shares many health care markets with southern Indiana, is also seeing sharp premium increases, putting added pressure on families who live and work near the state line.
Recent Indiana Health Insurance Developments
To help soften the blow, Indiana’s Family and Social Services Administration has extended enrollment for several Medicaid programs, including the Healthy Indiana Plan and Hoosier Healthwise, through December 24, 2025.
The Healthy Indiana Plan, known as HIP, covers adults ages 19 to 64 who earn up to about $21,600 per year. The program includes medical, vision, and dental benefits and has traditionally required small monthly contributions through what are called POWER Accounts. Those payments are currently paused following a recent federal court ruling, which temporarily eliminates some cost-sharing requirements such as copays.
More changes are on the way. MDwise, one of the state’s largest Medicaid managed care providers, announced it will stop offering HIP and Hoosier Healthwise plans after January 1, 2026. Members enrolled in those plans will need to choose a new provider during the extended enrollment period.
Anthem, another major insurer in the state, has urged residents to review their options carefully and to take advantage of community resources and the temporary suspension of cost-sharing under HIP.
Across the country, early enrollment data suggests fewer people signed up for ACA coverage this year as higher premiums took effect. In Indiana, state agencies report an increase in calls from residents looking for help navigating their options.
Governor Mike Braun’s office has not yet said whether new state legislation is being considered, but consumer advocacy groups are pushing for additional state-level subsidies or tax credits to offset rising costs.
Options to Consider
For people who still need coverage, HealthCare.gov remains available for those who qualify for special enrollment, such as after losing a job or moving. Others may now qualify for Medicaid programs like HIP because of income changes.
For many Hoosiers, the situation highlights how quickly Indiana Health Insurance costs can shift and how difficult it can be to plan from year to year.
State officials encourage anyone struggling with coverage decisions to contact FSSA or a certified health insurance navigator for assistance.
For help navigating insurance options and figuring out what works best for you, contact Nefouse & Associates today!