New Legislation Allows Indiana FSSA To Establish A ‘Medicaid-Diversion’ Pilot Program With The Area Agencies On Aging CHOICE Program

On May 1, 2025, Indiana Governor Mike Braun signed legislation that allows the Indiana Family and Social Services Administration (FSSA) to establish a “Medicaid diversion” pilot program to test whether services provided by the state’s Area Agencies on Aging (AAA) can reduce demand for Medicaid home- and community-based services (HCBS). Specifically, the pilot will allow the state to divert people from more expensive Medicaid waiver services to the Community and Home Options to Institutional Care for the Elderly and Disabled (CHOICE) program, which is administered by local AAAs. The goal is to test whether the AAA CHOICE program . . .