The HIPP program pays for health insurance premiums of Medicaid-eligible individuals if it is cost-effective for the State. This is a cost savings measure for the State and does not affect Medicaid eligibility.
Medicaid-eligible individuals who have private health insurance or have the opportunity to enroll in private health insurance. The HIPP program determines whether it is cost-effective to enroll someone in the HIPP program.
The HIPP program will look at all cost sharing services and administrative costs. If the total is less than what it would cost for Medicaid to cover the equivalent set of services of the private health plan, then the policy is considered cost-effective.