Directive stopping Medicaid advertising could cost businesses millions
Jan 21, 2025
Braun’s Medicaid order expected to cost millions
INDIANAPOLIS (WISH) — A directive from the Braun administration to stop advertising Medicaid programs is drawing new criticism from groups who say it will hurt small businesses.
The Braun-appointed Secretary of the Indiana Family and Social Services Administration (FSSA), Mitch Roob, directed organizations offering Medicaid plans, known as Managed Care Entities, to cease advertising on radio and television.
A memo obtained by I-Team 8 did not mention print, digital, or any other type of ads.
In his inauguration speech, Gov. Mike Braun said he intends to make Indiana “the standard-bearer for small business growth.” But in an interview with News 8, Executive Director of the Indiana Broadcasters Association Dave Arland said this directive “is punishing small business in Indiana.”
The IBA represents nearly 200 radio and television stations across the Hoosier state, which collectively employ 48,000 employees according to Arland.
“There are contracts that have been put in place with the agencies that buy this [commercial] time and they have called and said, ‘stop’. And we feel that’s inappropriate,” Arland said.
Right now, nearly two million Hoosiers rely on some form of Medicaid. With a population right around seven million, that means more than one in four people in Indiana use Medicaid.
“The post-COVID numbers in Indiana far exceed those in similar states. One does not know why that is, but one reason may be advertising,” Roob told the Senate Committee on Appropriations last week.
Consulting firm Miller Kaplan estimates the directive could cost Indiana broadcasters millions this year alone.
“Having a revenue stream cut off like this does have an impact,” Arland said. “We feel singled out, frankly … Ultimately, what you’re doing is keeping people from knowing about the Medicaid program.”
State Sen. Ryan Mishler, who chairs the Senate Appropriations Committee, told News 8 in a statement: “I am pleased to see efforts to help improve our state’s Medicaid standing, and I am in support of the [FSSA’s] recent directive for the state and our contracted managed care entities to stop all radio and television advertising of Indiana Medicaid programs. In fact, I believe FSSA could go a step further and stop all providers from promoting Medicaid programs.”
Gov. Braun’s office and the FSSA still have not returned News 8’s repeated requests for comment, while health advocates have criticized the order.
The situation has also attracted the attention of the National Association of Broadcasters, which said “significant first amendment concerns” are raised any time a government entity directs a business to stop advertising a legal service.
“Local broadcasters remain the most trusted source of news and information for the communities we serve,” NAB President & CEO Curtis LeGeyt said. “From partnerships with family run businesses on main street, to those serving health care needs, local broadcasters connect our communities and re-invest advertising revenues into local newsrooms. For these reasons, we hope the state will reconsider their policy.”
The IBA says its board and membership are figuring out the total impact and have yet to hear from the Braun administration.
“It would be good to have a better explanation,” Arland said. “Is this temporary? Is this permanent? How does this help us address our Medicaid issue in the state?”
Indiana is attempting to lower Medicaid enrollment due to rising costs, and a recent $1 billion budget shortfall. The FSSA is taking additional steps to lower enrollment numbers, including added eligibility checks throughout the year.