Indiana Secretary to Review Medicaid Eligibility Monthly Amid Lottery and Employment Changes

On April 17, 2025, Indiana Senate Legislation introduced Senate Bill 2, a significant piece of legislation aimed at enhancing the oversight and eligibility verification processes for Medicaid recipients in the state. The bill seeks to address concerns regarding the integrity of Medicaid assistance by implementing stricter monitoring protocols for individuals who may no longer qualify due to changes in their financial circumstances.

The primary provisions of Senate Bill 2 mandate that the Indiana Lottery Commission and the Indiana Gaming Commission collaborate monthly to identify Medicaid recipients who have reported lottery or gambling winnings exceeding $3,000. If such winnings are verified and result in the individual’s ineligibility for Medicaid, the bill requires the Office of the Secretary to terminate their enrollment promptly. This measure aims to prevent individuals from receiving benefits they no longer qualify for due to newfound wealth.

Additionally, the bill outlines a comprehensive review process for various circumstances that may affect Medicaid eligibility. The Office of the Secretary is tasked with monthly reviews of vital statistics to remove deceased individuals from the program, quarterly assessments of employment and wage changes, and annual evaluations of adjusted gross income and family composition. Furthermore, the bill stipulates that information from the Supplemental Nutrition Assistance Program (SNAP) and the Department of Correction will also be reviewed monthly to ensure ongoing eligibility.

The introduction of Senate Bill 2 has sparked notable debates among lawmakers and advocacy groups. Proponents argue that the bill is a necessary step toward ensuring that Medicaid resources are allocated to those who genuinely need them, thereby preserving the program's integrity. Critics, however, raise concerns about the potential for increased administrative burdens and the risk of erroneously terminating benefits for vulnerable populations.

The implications of this legislation are significant, as it could lead to a substantial reduction in Medicaid enrollment among individuals who may not meet the eligibility criteria due to increased income from gambling or other sources. Experts suggest that while the bill aims to tighten eligibility requirements, it may also inadvertently affect low-income individuals who rely on Medicaid for essential health services.

As Senate Bill 2 progresses through the legislative process, its future remains uncertain. Lawmakers will need to balance the need for fiscal responsibility and program integrity with the potential impact on Indiana's most vulnerable residents. The bill is set to take effect on July 1, 2025, pending further discussions and potential amendments in the coming weeks.