If you purchase your health care through the federal Marketplace (Healthcare.gov) in Indiana, you’re probably familiar with CareSource. They’ve been a staple choice for individuals, families, and entrepreneurs across the state for years.
However, CareSource has officially announced they are completely exiting the Indiana health insurance marketplace.
If you or a family member are currently covered by CareSource individual plans, this might feel like a bit of a curveball. Let’s break down what’s happening, why and what you need to do next.
Who is Affected by the CareSource Exit
First, let’s clarify which plans are changing, because CareSource wears a few different hats in Indiana:
- The Individual Marketplace Plans (Exiting): If you purchased a CareSource plan yourself on the Marketplace (whether it’s a Bronze, Silver, or Gold plan), your coverage will end at the close of this calendar year.
- Medicaid & Healthy Indiana Plans (Not Affected): If you are on CareSource through Indiana Medicaid or the Health Indiana Plan (HIP), nothing is changing. This exit only applies to the individual marketplace plans.
Why is CareSource Leaving Indiana?
It usually comes down to corporate strategy and balancing the books. Over the last few years, medical and prescription drug costs have risen sharply. Because the marketplace can be volatile, CareSource decided to shift its corporate focus away from plans in Indiana to concentrate on their core government-sponsored programs (like Medicaid).
Rather than raising rates to astronomical levels to stay in the game, they chose to stop out of the marketplace entirely.
The Good News: Your Current Coverage is 100% Safe
Here is the most important takeaway: Nothing changes for the rest of this year.
Your current benefits, your doctor networks, your deductibles, and your monthly premium costs are completely locked in through December 31st. You do not need to panic, and you don’t have to rush out to fix this tomorrow. You are fully protected as long as you keep paying your monthly premiums.
What Do You Need to Do Next?
When Open Enrollment begins in the fall you will need to contact your KSS insurance agent and choose another plan for 2027. If you do nothing, the Marketplace computer will automatically assign you to a “similar” plan with a remaining carrier so you don’t go uninsured. However, the machine doesn’t know who your preferred doctors are or what specific medications you take creating a hole in your coverage.
At KSS Insurance, our whole philosophy is to keep insurance simple. You don’t have to spend hours digging through networks to see which remaining carriers will cover your specific doctors next year.
We are already auditing the options for Indiana residents. When the enrollment window opens this fall, we’ll help you compare your options side-by-side to make sure your doctors stay in-network and your wallet stays happy.
If you got your letter from CareSource and want to get on our schedule early for a fall review, just give us a shout. We’ve got your back!