Lawmakers Aim to Strengthen Indiana CHOICE Program to Create ‘Medicaid Diversion Program’
In light of the 2023 Medicaid forecasting error that raised spending concerns, Indiana Medicaid officials have testified that the error was a result of increased utilization of home- and community-based services under Medicaid waivers. In response, a House committee has approved legislation aimed at bolstering existing programs to “divert” people away from more expensive Medicaid programs.
The proposed House Bill 1391 would establish a pilot program aimed at utilizing other state-based services administered through Area Agencies on Aging. The focus of the bill is on the CHOICE program, with the goal of creating Indiana’s first “true Medicaid diversion program” for older residents of the state.
Ryan Keller, executive director of the Area Agency on Aging in Vigo County, has been working on the pilot program for over a year. His insights reveal that care provided in assisted living or nursing facilities is typically more expensive than early intervention or preventative care.
“We focused on the two biggest areas 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. The program’s goal is to enrol up to 1,000 individuals — with the potential of saving the state tens of millions of dollars. 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.
The pilot program is a collaborative effort with the University of Notre Dame, which allows the state to use the results to inform future decision making.
Rep. Ed Clere (R-New Albany), the author of the bill, explained that the last time the CHOICE program was modernized was a decade ago. This provides an opportunity to make the program more effective within the context of Medicaid waivers.
Additionally, the bill would give the Family and Social Services Administration the authority to examine the realignment and consolidation of Indiana’s 16 Area Agencies on Aging. These agencies serve seniors and people with disabilities in all 92 counties, covering all of Indiana. This legislation is a testament to the state’s commitment to providing effective, cost-efficient care for its aging population and those with disabilities. They are making strides in the right direction with the proposed changes, suggesting a promising future for healthcare in Indiana.