Indiana Nursing Home Medicaid

PASRR and level-of-care review

All applicants to Medicaid-certified Indiana nursing facilities enter the web-based Preadmission Screening and Resident Review system. A Level I screen starts the PASRR process; where indicated, a Level II evaluation identifies specialized needs for people with mental illness, intellectual disability, developmental disability, or both (Indiana PASRR guidance).

FSSA describes the Level of Care Assessment Representative as providing PASRR, level-of-care assessments and renewals, and determination recommendations beginning July 1, 2025 (FSSA LCAR information). A facility placement, a PASRR screen, and a financial application should be coordinated rather than treated as interchangeable steps.

Personal needs and patient liability

Indiana Code permits an eligible person in a hospital or nursing facility to retain a monthly personal allowance. The statute sets $52 per month as the amount that may be exempt from income eligibility consideration and says the money may be used exclusively for the recipient's personal needs (Indiana Code Chapter 12-15-7). The balance of income may be subject to post-eligibility and patient-liability rules, with deductions that depend on the person and household.

Before admission, ask the facility and FSSA which documents are needed, who will obtain the clinical assessment, and what income contribution is expected. Keep the admission agreement, PASRR materials, assessment outcome, income verification, and Medicaid notices together.

The $52 allowance is not a complete patient-liability calculation. A resident may have other deductions or obligations under the post-eligibility rules, and a spouse at home may have a separate income allowance. Obtain the budget in writing and ask how a change in income will be handled (FSSA eligibility policy manual).

Ask who will communicate any change in income, coverage, or care level to the facility and FSSA, and retain all written notices (Indiana long-term-care guidance).