Feds Approve Ind.’s New Health Insurance Program for Low-income Adults

The federal government has given Indiana the go-ahead on its state-subsidized health care plan for low-income adults that will be partially funded by an increase in the cigarette tax.

The deal will allow Indiana to provide health insurance to about 130,000 uninsured Hoosiers, including childless adults.

The state will use about $140 million a year in cigarette tax money and matching federal dollars to fund the plan. Gov. Mitch Daniels says the new program should be up and running by January.

The federal government will kick more than $1 billion over five years to help pay for the program.