The company filed a layoff notice with the state after FSSA canceled its Medicaid contract.
INDIANAPOLIS — Health insurance company MDwise is laying off 238 people and closing its Indianapolis office, according to a notice filed with the state of Indiana.
MDwise is currently the largest managed health care plan for Hoosiers on Medicaid, with some 300,000 clients.
MDwise filed a WARN notice, named after the Worker Adjustment and Retraining Notification Act of 1988, which requires companies to announce layoffs.
On Wednesday, Nov. 12, FSSA announced it was terminating the managed health care plan MDwise ran for Hoosiers on Medicaid.
The FSSA says it reviewed MDwise’s performance and ability to meet “standards for member services, provider support and program accountability” before making its decision.
“Indiana Medicaid exists to provide dependable, high-quality care for the Hoosiers who rely on it,” said Mitch Roob, secretary of FSSA. “Our review found that, of the four plans, MDwise was both the most expensive and the lowest in quality. Federal rules require us to maintain at least three plans, and this decision allows us to meet those standards while safeguarding members’ access to care.”
Effective Jan. 1, 2026, members using Indiana Medicaid’s Healthy Indiana Plan (HIP) and Hoosier Healthwise programs will need to choose a new health plan.
MDwise issued the following statement Wednesday:
“The Indiana Family and Social Services Administration’s attack on MDwise should concern every Hoosier, especially those who rely on Medicaid for their health care needs. We have operated in good faith at every turn, and the state’s decision to terminate our contract ‘for convenience’ is unjustified and fails to consider the harm it will cause members, providers, employees and communities.
Instead of working together toward an orderly solution, the state has chosen a rushed path that jeopardizes care for hundreds of thousands of Hoosiers. MDwise presented multiple proposals to ensure a smooth, responsible transition – all of which have been ignored.
Despite this setback, MDwise is not giving up. We remain committed to finding a responsible path forward that preserves access to care, protects local jobs and honors our 30-year legacy of serving Indiana’s most vulnerable residents.”
MDwise dated its WARN notice for the day after FSSA’s announcement.