Indiana FSSA Medicaid · October 24, 2026 · Primary source
BT2026178
Summary
Indiana IHCP Bulletin BT2026178, issued October 22, 2026, revises the prior authorization process for Medicaid Rehabilitation Option (MRO)-equivalent services provided by Certified Community Behavioral Health Clinics (CCBHCs) under the CCBHC prospective payment system, effective January 1, 2027. Starting that date, the Division of Mental Health and Addiction (DMHA) will automatically generate Level of Need (LON) 4 service authorizations for Medicaid-eligible individuals with MRO-eligible diagnoses in the DARMHA database, eliminating the need for CANS or ANSA assessments at baseline. Providers seeking LON 5 or 6 authorizations for individuals requiring higher-level services must complete the required steps in DARMHA by December 31, 2026.
What this may mean
CCBHCs in Indiana must transition to the new automated LON 4 authorization process by January 1, 2027, and must complete any LON 5 or 6 requests in DARMHA by December 31, 2026 to avoid reverting to the default LON 4. Each MRO-equivalent service authorization covers a 180-day period with fixed start and end dates, replacing the prior 180-day lookback period. The process change does not affect MRO services provided by community mental health centers outside CCBHC settings.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
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