INDIANAPOLIS (AP): Indiana has received federal approval to expand Medicaid to cover 350,000 uninsured residents through a state-run program that supporters say increases participant responsibility.

Gov. Mike Pence announced Tuesday that the Centers for Medicaid and Medicare Services had approved the state's request for the plan his administration calls HIP 2.0.

The plan builds off the Healthy Indiana Plan that began under former Gov. Mitch Daniels. The initial program currently enrolls some 60,000 low-income Indiana residents.

Consumers enrolled in HIP 2.0 will make optional contributions and have a hybrid health savings account.

Pence in July submitted his HIP 2.0 proposal to federal officials as an alternative to a traditional expansion of Medicaid.

The costs will be covered with revenue from Indiana's cigarette tax, hospital fees and federal Medicaid funding.