Pence to Propose 2-Tier Insurance Plan for Poor

INDIANAPOLIS (AP) _ Indiana Gov. Mike Pence is proposing a two-tiered health insurance plan for low-income residents that would allow the state to use its own program instead of Medicaid to provide coverage.
President Barack Obama's health reform law called for expanding traditional Medicaid to people earning up to 138 percent of the federal poverty level.  Indiana wants to expand that coverage through its Healthy Indiana Plan but has run into federal objections. 
Pence is scheduled to unveil his proposal Thursday. Officials with direct knowledge of the plan told The Associated Press that participants in the first tier would receive limited coverage at no charge. A second tier would include dental and vision coverage and require participant contributions.
The officials spoke on condition of anonymity because they weren't authorized to discuss the proposal.