IN HB1162

Home and community based services waiver providers must spend at least 70% of the state share of Medicaid per diem reimbursement on direct care staff compensation for attendant care services

Compensation includes salaries, wages, paid time off, health/dental/vision insurance, life and disability insurance, worker's compensation, retirement benefits, tuition reimbursement, payroll taxes, and travel reimbursement

Direct care staff are defined as employees who provide direct, hands-on care to waiver participants; administrative costs, supervision, and overhead do not count toward the 70% requirement

Providers must submit an annual cost report by June 30 documenting compliance, including total attendant care revenue, compensation expenditures by category, supervision costs, and administrative overhead

Effective July 1, 2026