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Debate intensifies over Pathways long‑term care bill as providers and FSSA disagree on savings and risks
Summary
House Bill 12‑77 would move long‑stay nursing‑home residents back to fee‑for‑service, set individual cost caps, and create an assisted‑living waiver; providers said the changes would save millions and reduce wait lists, while FSSA warned savings are unproven and implementation could require reopening contracts and new budget authority. The committee held the bill for further amendment and vote next week.
House Bill 12‑77, a package of changes aimed at stabilizing Indiana’s Pathways long‑term services and supports program, drew hours of testimony and sharply divergent fiscal views in the Appropriations Committee.
Sponsor remarks and providers’ testimony focused on three main changes in the bill: (1) transitioning nursing‑home residents who have been in a facility 100 consecutive days back to fee‑for‑service rather than leaving them under the managed‑care Pathways model, (2) implementing an individual cost cap for waiver services, and (3) creating a separate assisted‑living waiver to expand lower‑cost options. Representative Barrett and industry witnesses said the changes would reduce administrative overhead paid to managed‑care entities and free up capacity for…
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