August 4, 2026
The Arc of Indiana understands the concern and uncertainty created by recent discussions about considering parental income and resources when determining financial eligibility for children receiving Medicaid Waiver services. At this time, nothing has changed. Under current Indiana law, parental income and resources are not considered when determining a minor’s financial eligibility for Medicaid Waiver services.
The Arc of Indiana has championed this protection for more than 35 years. In 1991, The Arc led the passage of Senate Bill 30, establishing this important safeguard for Indiana families. We also successfully defended it when it was challenged in 2011.
It is also important to understand that, for more than a year, FSSA has collected household income and asset information from families of minor children as part of the Medicaid application and redetermination process. Collecting this information does not mean parental income is currently being used to determine a child’s Medicaid Waiver eligibility, nor does it mean that a change has been made. However, because FSSA has indicated it is evaluating this issue, The Arc has been actively engaging with FSSA on this issue.
Our position remains clear: A family’s income should never prevent a child with a disability from receiving the Medicaid Waiver services and supports they need to live safely at home and participate in their community. Any change to this longstanding statutory protection would require action by the Indiana General Assembly. It cannot simply be implemented through an internal agency’s decision.
The Arc of Indiana will continue to advocate for children with disabilities, keep families informed, and stand with families in protecting this critical safeguard.
FSSA’s Quarterly Financial Review takes place Wednesday, August 5. The Office of Medicaid Policy and Planning portion begins at 12:30 p.m. ET, followed by the Division of Disability, Aging and Rehabilitative Services at 1:30 p.m. You can join the meeting virtually here: https://www.youtube.com/@FSSAIndianavideos.
The Arc of Indiana CEO Kim Dodson will be the special guest for “Ask The Arc” on Thursday, August 13, at 6:00 p.m. ET. Kim will provide updates on key issues affecting people with intellectual and developmental disabilities and their families and provide information on the advocacy and engagement needed in the weeks and months ahead. You can register here: https://bit.ly/Ask_the_Arc. A recording will be shared on our YouTube channel, youtube.com/TheArcofIndiana following the event. Please note that anyone who has registered for an “Ask The Arc” webinar previously is already registered.
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