Lawmakers want to bolster Indiana CHOICE program to create 'Medicaid diversion program'

Indiana Medicaid officials said the 2023 Medicaid forecasting error that sparked concerns over spending was a result of increased utilization of home- and community-based services under Medicaid waivers. A House committee approved legislation that would bolster existing programs to “divert” people away from more expensive Medicaid programs.

Lawmakers say House Bill 1391 would establish a pilot program to utilize other state-based services administered through Area Agencies on Aging. It focuses on the CHOICE program to create Indiana’s first "true Medicaid diversion program" for older Hoosiers.

Ryan Keller, executive director of the Area Agency on Aging in Vigo County, has been working on the pilot program for over a year. He said care provided in assisted living or nursing facilities is usually more expensive than early intervention or preventative care.

“We focused on the two biggest areas of where folks have triggering Medicaid incidents, and that's where they lose their ability to independence typically through falls or poor chronic disease management,” Keller said.
 

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He said the program will include up to 1,000 individuals — hopefully saving the state tens of millions of dollars. Keller said if that expected savings is applied to the larger potential Medicaid population, Indiana could save $8 billion to $10 billion in state and federal costs.

“It's nothing to shake a stick out by any means, but that is a really great approach to start to slow the transition of our aging population into that costly Medicaid system,” Keller said.

The pilot program is a collaborative effort with the University of Notre Dame, which gives the state the ability to use the results to inform future decision making.

READ MORE: Legislation would tackle barriers for assisted living services — including Medicaid waiver waitlist

The author of the bill, Rep. Ed Clere (R-New Albany) said the last time the CHOICE program was modernized was a decade ago, meaning this is an opportunity to make the program more effective within the context of Medicaid waivers.

Clere also said the bill would give the Family and Social Services Administration the authority to look into realignment and consolidation of Indiana’s 16 Area Agencies on Aging. Those agencies serve seniors and people with disabilities in all 92 counties, covering all of Indiana.
 

Abigail is our health reporter. Contact them at aruhman@wboi.org.