Indiana lawmakers approved major changes to the state’s long-term care system tied to the PathWays for Aging Medicaid program.

House Bill 1277 passed the General Assembly with strong bipartisan support. The bill now awaits action from Gov. Mike Braun, who has not signed it into law. Supporters say the changes could reduce administrative costs and expand access to assisted living for older Hoosiers.

Nick Goodwin, director of government affairs for the Indiana Health Care Association, said providers believe the current system adds unnecessary bureaucracy.

"The intent here is to save hundreds of millions in Medicaid costs, significantly reduce the administrative burden that is being placed on providers in the pathway program today," he said, "empower more consumer choice and hopefully allow for expanded access to thousands of elderly and vulnerable Hoosiers."

Some have argued the proposal may shift Medicaid costs rather than reduce them. The bill would require Indiana to apply for a new Medicaid waiver focused on assisted living services for people age 60 and older who qualify for nursing home level care. Another provision changes how Medicaid pays for long-stay nursing home residents.

Beginning in 2027, residents who spend at least 100 consecutive days in a nursing facility would move out of managed care. They would instead receive Medicaid services through a fee-for-service system. Goodwin said the bill focuses on a specific group of residents rather than dismantling the entire program.

"If the nursing home is their residence, there is no care for the managed-care entity to manage," he said. "We are intentionally being very targeted by looking at that population of people and not trying to unwind the entire PathWays program."

If Braun signs the measure, the changes will phase in over the next few years.

Source: Public News Service