STATEHOUSE (Feb. 3, 2026) – The Indiana House of Representatives recently approved legislation authored by State Rep. Brad Barrett (R-Richmond) that would strengthen Medicaid-supported assisted living services by requiring the state to pursue a new waiver and amend existing programs to better align costs with nursing facility care.
"Hoosiers deserve access to care that meets their needs while remaining cost effective for taxpayers," Barrett said. "This legislation modernizes how Indiana delivers assisted living services through Medicaid, improves care coordination and ensures resources are used responsibly so seniors and individuals with disabilities can receive care in the most appropriate setting."
House Bill 1277 restructures Medicaid assisted living services by requiring the state to seek a new standalone Medicaid Home and Community Based Services waiver specifically for assisted living. The bill also requires the Indiana Family and Social Services Administration to amend an existing waiver to ensure individual costs do not exceed the cost of nursing facility care.
Barrett said the legislation strengthens consumer choice by allowing Medicaid recipients in assisted living settings to choose their provider of integrated health care coordination. It also clarifies that integrated care coordination provided by assisted living providers is not duplicative of other Medicaid services, helping streamline care delivery and reduce unnecessary administrative burdens.
Additionally, the bill establishes clear program boundaries by transitioning individuals to a fee for service Medicaid program after 100 consecutive days in a nursing facility. The bill also requires a comprehensive study of assisted living Medicaid reimbursement rates to evaluate provider access, rural coverage, interstate comparisons and administrative efficiency to support long-term program stability.
HB 1277 now moves to the Senate for further consideration. To learn more and watch session and committee meetings, visit iga.in.gov.
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State Rep. Brad Barrett (R-Richmond) represents House District 56,
which includes Wayne County and portions of Henry County.
Click here to download a high-resolution photo.
PHOTO CAPTION: State Rep. Brad Barrett (R-Richmond) testifies before the Indiana House of Representatives on Monday, Jan. 2, 2026, at the Statehouse. A bill Barrett authored would strengthen Medicaid assisted living services.
