Ind. Senate panel OKs state withdrawal from Medicare, Medicaid

INDIANAPOLIS | A Senate committee on Wednesday approved legislation authorizing the governor to withdraw Indiana from Medicare, Medicaid and nearly all federal health programs.

House Bill 1269 permits the governor to enter into a health care compact with other states that will enable each state to regulate the provision of health care at the state level but pay for it with federal funds.

The nonpartisan Legislative Services Agency estimates Indiana would have to pay $15 billion a year to maintain the federally supported health programs that Hoosiers now receive, though federal funds are expected to cover that cost if the interstate compact is approved by Congress.

Supporters of the plan say health care is too complex to be managed at the federal level and states would do a better job.

Opponents say seniors and the poor would lose health care coverage as states compete to eliminate programs and services.

The legislation now advances to the full Senate.