Braun signs long-term care bill during Jasper ceremony

House Enrolled Act 1277 changes how Indiana will manage long-term care for older adults, with new rules for assisted living waivers, cost limits and paperwork reviews that could affect seniors, nursing homes, caregivers and families making Medicaid decisions. Gov. Mike Braun ceremonially signed the bill at The Timbers of Jasper on May 8, putting Dubois County at the center of a statewide shift in how Indiana pays for aging services.

The law directs the Indiana Family and Social Services Administration to apply by Sept. 1, 2026, for a separate Medicaid waiver for assisted living services for people age 60 and older who meet nursing-facility-level-of-care requirements. It also requires the state to seek an amendment to another waiver so an individual cost limit does not exceed the cost of institutional nursing-facility care. For families and providers, that means the state is trying to tighten the rules around where care is delivered and how much Medicaid will pay.

HEA 1277 also adds documentation requirements for waiver providers, with recipients expected to review the paperwork for errors and case managers expected to help them do it. That makes the bill more than a funding tweak. It is an administrative overhaul aimed at tracking services more closely, a change that could matter to assisted living operators, home health agencies and county residents trying to navigate eligibility and billing.

The Jasper appearance came after Braun already signed the bill into law on March 12. The legislation passed the Indiana House 96-0 and the Senate 46-4 on Feb. 27, showing broad support even as the policy drew criticism from some advocates and providers. Supporters, including the Indiana Health Care Association and the Indiana Center for Assisted Living, said the measure would help fix problems in the PathWays for Aging program and save Medicaid dollars. Others warned it could disrupt care coordination or limit access to home- and community-based services.

The debate lands in a state that has been adjusting senior care for decades. Indiana began offering Medicaid waivers for home and community-based services in 1986, and PathWays for Aging launched July 1, 2024, for more than 123,000 eligible Hoosiers age 60 and older. State officials have said 75% of people in the program are expected to be able to receive long-term care at home, a goal that makes the new law a significant step in Indiana’s effort to keep more seniors out of institutions while controlling costs.