MedicaidCoverageMedium impact
BT202003: IHCP gains federal approval to reimburse for acute SMI stays in IMDs
Indiana Medicaid (IHCP)·IN · Psychiatry·Provider Bulletin
Effective date
Jan 1, 2020
We identified it
Jun 19, 2026
Summary
Indiana Medicaid (IHCP) now covers acute inpatient mental health treatment at institutions for mental disease (IMDs) for members ages 21-64 with serious mental illness. Prior authorization is required for all stays, with a maximum 60-day limit and statewide average length of stay target of 30 days.
Action Required
Immediately: Billing teams at qualifying psychiatric hospitals (provider type 01, specialty 011) with more than 16 beds must obtain prior authorization for all inpatient SMI stays for Indiana Medicaid members ages 21-64. Contact DXC Technology at 1-800-269-5720 for fee-for-service prior auth or the appropriate MCE for managed care prior auth. Claims for stays exceeding 60 days will be denied.