Indiana Law Shifts Long-Stay Nursing Home Residents to Fee-for-Service

Indiana enacted House Enrolled Act 1277, a Medicaid reform law altering the state's PathWays for Aging managed care program and other long-term services and supports. Most provisions took effect July 1, 2026, but the law also directs a transition of certain long-stay nursing facility residents out of managed care and into fee-for-service Medicaid, with that transition beginning on a later timeline described in the update. Long-term care and HCBS providers, along with PathWays managed care plans, must adjust billing, care coordination, and enrollment processes to align with the new structure. The change affects how nursing facilities and HCBS providers interact with payers for affected residents going forward.

LTSS · Managed Care