Indiana BDS Waiver Reset 2026: What Families Need to Know
Indiana's Bureau of Disabilities Services is in the middle of the most significant structural overhaul its waiver system has seen since the original HCBS waivers launched. The state is phasing out the current Family Supports Waiver (FSW) and Community Integration and Habilitation (CIH) waiver in favor of a unified waiver system, with full implementation targeted for 2028. If your family member receives waiver services — or is on the waitlist — here is what the reset means in practice.
What the Waiver Reset Changes
The core shift is eliminating the current multi-waiver structure. Currently, families must choose between FSW (a lighter-touch, home-based waiver capped at $26,482 annually) and CIH (a comprehensive waiver for individuals needing 24-hour residential support with no comparable annual cap). The unified system will replace both with individualized "supports budgets" tied directly to the individual's assessed needs.
The legacy categorization metrics — including the "Algo Levels" used on CIH to determine service tiers — are being retired. Instead, every participant's budget will be calculated from their interRAI assessment scores, which BDS adopted statewide in January 2026. The idea is that two individuals with identical clinical profiles should receive identical budgets, regardless of which legacy waiver they happened to be on.
The CMCO Transition Already Happened
One major piece of the reset is already in effect. On August 1, 2026, Indiana implemented a selective contracting model under its federally approved 1915(b)(4) case management waiver. This terminated all legacy case management providers and restricted BDS waiver case management to five designated statewide Case Management Organizations (CMCOs):
- Aging & In-Home Services of Northeast Indiana, Inc.
- Indiana Professional Management Group (IPMG)
- Inspire Case Management
- Unity of Indiana
- The Columbus Organization
Families whose case management was handled by a provider not on this list were required to transition to one of the five authorized organizations. If you have not yet selected a new CMCO, contact your local BDS District Office — delayed selection can interrupt service coordination.
August 2026 Rule Changes
Alongside the CMCO transition, BDS implemented several amendments that apply to both FSW and CIH participants immediately:
Paid family caregiver limits. Payment to relatives and legal guardians is restricted to four waiver services: respite, Participant Assistance and Care (PAC), transportation, and workplace assistance. Relatives cannot be compensated for any other waiver services.
The 40-hour weekly cap. For relatives or legal guardians who are not legally responsible individuals (adult siblings, aunts, uncles, grandparents), the aggregate hours reimbursed for PAC, respite, and workplace assistance combined cannot exceed 40 hours per week per caregiver.
Benefits counseling cap. Benefits counseling is now limited to 6 hours per calendar year per waiver recipient.
Case note deadlines. Case managers must complete all case notes within 7 calendar days of the activity or event.
Free Download
Get the Indiana — SSI at 18 Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
What Stays the Same (For Now)
While the reset is underway, the fundamental eligibility criteria have not changed. Applicants still must have an intellectual or developmental disability with onset before age 22, meet the ICF/IID level of care (substantial limitations in at least three of six major life areas), and comply with Medicaid financial eligibility (income not exceeding 300% of the SSI federal benefit rate, countable assets under $2,000).
The FSW waitlist still operates chronologically with priority categories for school-exit transitions (ages 18–24). CIH access remains needs-based through emergency categories. These structures will continue until the unified waiver receives federal CMS approval.
How to Prepare
Families currently on the waitlist should ensure their BDS Gateway application is current and that contact information is up to date — the transition will not restart the waitlist, but administrative confusion during the changeover could cause missed correspondence.
Current waiver participants should attend CMCO transition meetings offered by their new case management organization and keep copies of their most recent Person-Centered Individualized Support Plan (PCISP) and interRAI assessment results. When the unified waiver rolls out, your existing assessment data will likely determine your initial supports budget.
For a detailed walkthrough of the current waiver system, the August 2026 amendments, and how they fit into the full adult benefits transition timeline, see our Indiana SSI at 18 & Adult Disability Benefits Guide.
Get Your Free Indiana — SSI at 18 Checklist
Download the Indiana — SSI at 18 Checklist — a printable guide with checklists, scripts, and action plans you can start using today.