Nearly 40,000 Hoosiers who rely on the state to help them with health care coverage will have to find a new provider.

MdWise, the Indiana based not-for profit health care provider has informed the state it is exiting Hoosier Care Connect, the state program which helps provide coverage to some of the state’s most vulnerable populations, particularly the aged, blind and people with disabilities.

When asked why MdWise was leaving Hoosier Care Connect, Lindsey Lux, MdWise Senior VP told Indy Politics “MDwise was unable to secure the rates needed to continue participation in Hoosier Care Connect and thus, will be exiting the program. Our focus is on ensuring members have continuous coverage and we are working closely with the State to facilitate a smooth transition.”

However Indy Politics did learn that MdWise lost between $75 million to $100 million trying to provide coverage to that population and the company and the state have been at an impasse over past reimbursement rates.

FSSA Medicaid Director Joe Moser says those currently receiving services under MdWise will be transferred over to Anthem or Managed Health Services.  He says both companies can handle the additional capacity.

Open enrollment starts Wednesday and will run through March 15.  Moser says anyone who does not pick a plan within that 30-day window will be assigned one based on the services they received from MdWise and they will have 120 days to switch to a new plan.    However Moser says not everyone may be able to keep their same doctor, specialists or same prescription plan.

Moser also tells Indy Politics that this change does not affect HIP 2.0.