Indiana State Rep. Porter Calls for Details After Indiana Drops MDwise From Medicaid Plans While Owing $313 Million

Staff report

Bloomington, Ind. – November 20, 2025

State Rep. Gregory W. Porter is demanding more transparency from the Indiana Family and Social Services Administration after the agency abruptly ended its Medicaid managed-care contract with MDwise — even as the state reportedly still owes the nonprofit insurer about $313 million.

In a Thursday statement, Porter, D-Indianapolis, said the split threatens continuity of care for roughly 300,000 Hoosiers enrolled in the Healthy Indiana Plan and Hoosier Healthwise programs, who must now pick a new health plan during open enrollment ahead of a Jan. 1, 2026 transition.

“Less than two months is a short transition,” Porter said, warning that overloaded case managers and the holiday season could cause vulnerable patients to fall through the cracks. He also compared the situation to Indiana’s long-running dispute with IBM over a failed welfare-automation contract, suggesting the MDwise termination could lead to years of litigation.

FSSA announced Nov. 12 that MDwise would no longer be an option for HIP and Hoosier Healthwise members, citing a performance review that found the company had the lowest quality scores and the highest costs among Indiana’s four Medicaid managed-care plans. The agency said federal rules require Indiana to maintain at least three plans, and ending MDwise’s contract would help stabilize Medicaid spending.

Under the change, MDwise members must choose among Anthem, CareSource, and Managed Health Services (MHS). Those who don’t select a plan will be automatically assigned, with a 90-day window after Jan. 1 to switch. FSSA has said current authorizations and treatments will be honored for a transition period.

MDwise, an Indianapolis-based nonprofit that has participated in Indiana Medicaid for more than 30 years, has challenged the termination in court. A Marion County judge recently denied the company’s request for a temporary restraining order, though MDwise has been allowed to appeal. The insurer argues the state ended the contract improperly and says the timeline risks disrupting care and eliminating hundreds of local jobs.

Porter said lawmakers need a full accounting of why the contract was cut early — and how the state plans to address the outstanding $313 million the House Democrat says Indiana owes MDwise. He said he expects answers at the next State Budget Committee meeting and is preparing legislation requiring greater legislative review before major Medicaid managed-care changes are finalized.

Indiana Medicaid currently covers about 1.7 million residents statewide. MDwise accounted for roughly 17% of managed-care enrollment before the termination notice, according to state dashboard figures cited in recent reporting.

The transition will unfold during the current open enrollment period, with letters and enrollment assistance being sent to affected members, FSSA said.

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