Indiana is looking to save millions of dollars by reviewing the eligibility of Medicaid recipients and removing ineligible individuals from the program, said Indiana Governor Mike Braun in an interview with Newsmax.
Such enrollees include those technically eligible for Medicare and those receiving benefits despite living in other states, Newsmax reports.
Since Braun first took office in 2025, Medicaid enrollment in Indiana has been reduced by 11-percent, Newsmax states, later adding “Braun attributed Indiana’s approach to what he described as a management mindset shaped outside politics.”
Accountability, Not Scandal
“Governor Braun’s aggressive crackdown on Medicaid waste, fraud, and abuse in Indiana is a textbook example of conservative governance at its best, delivering real savings of nearly half a billion dollars while safeguarding the program for those who truly need it,” said Gary Alexander, the former director of the Paragon Health Institute’s Medicaid and Health Safety Net Reform Initiative.
“By tackling eligibility errors head-on and implementing work requirements, he’s fostering self-sufficiency and fiscal responsibility,” said Alexander.
“This cleanup stands out positively in conservative circles, especially when contrasted with scandals in states like Minnesota (facing billions in alleged fraud),” said Alexander, also noting how “Many other states, particularly those with more progressive policies, have been slower or more resistant to similar aggressive eligibility checks and work mandates, often citing concerns over coverage losses.”
Indiana’s model, said Alexander, “shows other states what decisive, pragmatic leadership can achieve in restoring integrity to Medicaid.”
Similarly, Braun’s efforts mark “commonsense program integrity measures,” said Paige Terryberry, a senior research fellow at the Foundation for Government Accountability (FGA).
Indiana Not Alone
Medicaid is becoming a fiscal cliff. “From Minnesota-style fraud to California-sized mismanagement to massive cost overruns, states across the country are facing serious problems in their Medicaid programs, which are often the largest line item in their budgets,” said Terryberry.
California, Colorado, Kansas, Michigan, New York, Ohio, and Virginia have experienced similar issues with ineligible Medicaid enrollees receiving benefits, according to an FGA report by Terryberry, which cites state and federal audits.
In some instances, the FGA report indicates, such recipients include deceased individuals.
“However,” said Terryberry, “well-run states like Indiana are fixing the problem head-on by implementing smart solutions to reverse exploding costs and improper payments, saving taxpayer dollars and prioritizing resources for the truly needy once again.”
‘Nibbling at the Edges’
Braun’s efforts may not go far enough, says Stephen Moses, president of the Center for Long-Term Care Reform and a visiting fellow at the Paragon Health Institute.
“Medicaid fraud is all the rage now because of the fiasco in Minnesota,” said Moses. “Indiana Governor Mike Braun claims to be getting in front of the problem by reducing Medicaid enrollment 11 percent and saving $466 million. But he’s only nibbling at the edges by shifting costs to Medicare and nipping double-dipping from other states.”
Medicaid Rules Invite Fraud
There is a more fundamental challenge for reformers, says Moses.
“The real fraud problem is bigger than any one governor can address,” said Moses. “Medicaid rules incentivize state over-spending that invites fraud. The federal government matches state funds at a rate from one-to-one (for big rich states) to 90 percent for able-bodied recipients added by the Affordable Care Act (ACA). States maximize federal funding by taxing health providers…and using other fiscal manipulations that avoid actually taxing their citizens.”
Indiana offers a special example of such Medicaid “money-laundering schemes,” says Moses, citing a report he authored, “Medicaid Money Laundering Harms Long-Term Care.”
“The Hoosier State converted private nursing homes into public entities to maximize federal funding but diverted most of the extra funds to general state purposes, leaving nursing homes with less and causing poorer care,” said Moses.
The example of alleged fraud described by Moses previously was the subject of an investigative piece by The Indianapolis Star, which claimed to have found “at least $1 billion in supplemental Medicaid funding meant for nursing homes has been diverted to the state’s county hospitals since 2003. The total is likely much more. It could be nearly $3 billion,” said Moses.
“Is it any wonder fraud proliferates in Medicaid when states are motivated to take such legal advantages that are tantamount to fraud?” asked Moses.
Reform Required Nationally
Regarding the kind of fraud that took place in Indiana, Moses said, “Corrective action will require intervention at the national policy level involving reform of Medicaid’s federal funds matching system and basic financial eligibility rules.”
Congress must act. “Individual state governors cannot be expected to make much progress on fraud when federal incentives encourage them to manipulate the system in these ways,” said Moses.
Although it may not address all the issues raised by Moses, FGA’s report suggests President Donald Trump’s One Big Beautiful Bill will bring “historic and much-needed reform to Medicaid,” namely by reining in “unsustainable improper spending” through more frequent eligibility redeterminations like those implemented by Braun in Indiana.
Resistance to Reform
Some state leaders are resisting the kinds of reforms Trump and Braun are pushing, specifically ending enrollment abuse.
Assemblywoman Shanique Speight of New Jersey, for example, introduced legislation in November that would “provide limited medical benefits to individuals who lose coverage due to new eligibility requirements” established by the One Big Beautiful Bill.
“Assemblywoman Speight acknowledges that New Jersey has a lot to prioritize in terms of addressing affordability…” stated a press release, adding that “making sure New Jerseyans have access to health care through Medicaid is a top priority for her.”
Daniel Nuccio, Ph.D. ([email protected]) is a spring 2026 College Fix journalism fellow, reporter, and editorial associate for Health Care News.
