On March 12, Indiana Gov. Mike Braun signed a bill that would transfer nursing home residents with a stay duration of at least 100 days from Medicaid managed care to fee for service.
The transitions will begin July 1, 2027. The state will also seek approval for an assisted living Medicaid waiver.
The legislation addresses the covered population for the state’s PathWays for Aging Medicaid program. The initiative launched in 2024 and targets Medicaid-eligible older people, bringing those in nursing homes under managed care.
A March 12 statement from the Indiana Health Care Association said the program “has been plagued with issues since day one.” In 2023, the state awarded $3.8 billion contracts to UnitedHealthcare, Humana Healthy Horizons and Anthem Blue Cross (Elevance Health) to spearhead PathWays for Aging. Molina Healthcare of Indiana was offered a contract, as well, but later withdrew. The Indiana Health Care Association has since estimated $100 million due in late and “inappropriately denied” Medicaid payments from Humana, Elevance Health and UnitedHealthcare.
Leading up to the latest reforms, a Jan. 30 presentation by Indiana’s Family and Social Services Administration said the state will seek bids for $68 billion in managed Medicaid contracts, which includes PathWays for Aging.
