Indiana Medicaid: Glitch Wrongly Cuts Hoosier Medicaid

Matthew Colley

24 Jun 2026 — 2 min read

Glitch Chaos: New State System Wrongfully Cuts Medicaid for Vulnerable Hoosiers

The Systemic Failure: Flawed Asset and Income Calculation Portal

Over the past month, a rushed update to Indiana's data infrastructure, designed to manage new asset and income threshold adjustments, has resulted in a catastrophic system-wide failure. The new automated portal is incorrectly calculating assets, leading to thousands of automated, wrongful termination notices being sent to Indiana’s most vulnerable Medicaid recipients, primarily seniors and disabled individuals. This is not a policy change; it is a critical IT breakdown causing immense human suffering.

The effect is immediate and severe. We've spoken with a grandmother in Muncie who lost access to her heart medication because the system misread a one-time family gift as recurring income. A disabled veteran in Evansville received a termination letter after the portal incorrectly valued his decade-old vehicle, pushing him over the new asset limit. The state's helpline is overwhelmed, leaving desperate Hoosiers without answers or recourse as they lose access to life-sustaining care.

Your Action Plan: What To Do If You've Been Affected

The state’s official channels are failing to handle the crisis. If you or a loved one received a termination or reduction notice you believe is an error, take these immediate steps:

File an Appeal Immediately: This is the most critical step. You have a limited time to appeal. Submitting an appeal request can preserve your benefits while your case is reviewed. The form and deadline should be on your notice letter. Do not miss this deadline.
Contact Free Legal Aid: Do not try to fight this alone. Indiana Legal Services and your local Area Agency on Aging have navigators and lawyers who understand this specific system failure and can advocate on your behalf at no cost.
Escalate to Your State Representative: Your elected officials have constituent services staff who can often cut through bureaucratic red tape. Call or email your state representative’s office, clearly explain that you are a victim of the new portal glitch, and ask for their direct intervention with the Family and Social Services Administration (FSSA).

Join the Email Action Coalition. Help Follow and Forward to Families Suffering.

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