Indiana lawmakers are moving forward with House Bill 1391, which aims to enhance services for the state’s aging population and individuals with disabilities. This legislation authorizes the Family and Social Services Administration to investigate the potential realignment and consolidation of Indiana’s 16 Area Agencies on Aging, which currently provide essential support across all 92 counties.
The initiative was partly prompted by a 2023 forecasting error related to Medicaid spending, attributed to increased demand for home- and community-based services. The new bill is designed to create a pilot program aimed at diverting individuals from more costly Medicaid facilities, focusing specifically on the CHOICE program, which will be Indiana’s first genuine Medicaid diversion initiative for older residents.
Ryan Keller, director of the Area Agency on Aging in Vigo County, has invested over a year in developing this pilot program. He noted that care in assisted living or nursing homes is generally more expensive compared to early intervention strategies. Keller highlighted that the program is targeting the most common triggers for Medicaid enrollment, such as falls and inadequate management of chronic diseases.
The program is expected to include approximately 1,000 participants, with projected savings of tens of millions of dollars for the state. If expanded, these savings could amount to $8 billion to $10 billion in combined state and federal expenditures. “This approach represents a significant steps toward managing the rising costs associated with an aging population,” Keller stated.
Collaboratively developed with the University of Notre Dame, the pilot program will provide insights that may guide future policy decisions concerning elderly care in Indiana. Rep. Ed Clere (R-New Albany), the bill’s author, remarked that this is a timely opportunity to modernize the CHOICE program, which has not seen updates in a decade.
This legislation not only aims to improve the quality of care for Indiana’s seniors but also holds the potential to reshape the state’s financial approach to Medicaid, making it more sustainable in the long run. As Indiana takes these proactive steps, the focus on preventive care and resource efficiency could pave the way for more effective aging services and financial health for the state’s Medicaid program.