Medicaid in Indiana: Plan Types and Coverage for Drug Rehab and Mental Health
The Grove Estate does not accept Medicaid. The Grove Estate accepts commercial insurance for residential addiction treatment in Peru, Indiana; call 765-204-1188 to check your plan. Indiana Medicaid members can find a treatment provider that takes Medicaid by dialing 2-1-1 for Indiana 211 or through the FSSA Division of Mental Health and Addiction’s list of certified addiction treatment providers.
Indiana Medicaid is the state and federal health coverage program run by the Indiana Family and Social Services Administration (FSSA), and Indiana Medicaid covers addiction treatment from outpatient counseling to residential and inpatient care. Most adults get Indiana Medicaid through the Healthy Indiana Plan (HIP).
What is Medicaid Coverage for Addiction Treatment in Indiana?
Indiana Medicaid covers the full range of substance use disorder care, from counseling and medication to residential treatment and hospital stays. The following are the 5 types of addiction treatment Indiana Medicaid covers, according to the Indiana Health Coverage Programs (IHCP):
- Outpatient treatment, including counseling and intensive outpatient treatment.
- Opioid treatment programs, which provide medication for opioid use disorder with counseling.
- Short-term residential treatment at facilities designated for ASAM Level 3.1 or 3.5.
- Inpatient treatment at psychiatric hospitals for people who meet ASAM Level 4 criteria.
- Opioid treatment started in a hospital emergency department.
89% of substance use treatment facilities in Indiana reported accepting Medicaid in 2024, compared with 78% nationally, according to KFF’s analysis of SAMHSA’s National Substance Use and Mental Health Services Survey (N-SUMHSS).
Did you know most health insurance plans cover substance use disorder treatment? Check your coverage online now.
What is the Healthy Indiana Plan, and How Does it Cover Drug Rehab?
The Healthy Indiana Plan (HIP) is Indiana’s Medicaid program for low-income adults ages 19 to 64, with income up to 138% of the federal poverty level, and HIP covers addiction treatment like the rest of Indiana Medicaid. Each HIP member has a POWER Account, a health savings account that pays the first $2,500 of health care costs each year.
HIP members pay a monthly POWER Account contribution between $1 and $20, based on income, and the amount is higher for members who use tobacco, according to FSSA. Members below the poverty level who stop paying move to HIP Basic, which charges copayments for most care.
Which Indiana Medicaid Managed Care Plans Cover Addiction Treatment?
3 managed care plans serve Healthy Indiana Plan and Hoosier Healthwise members: Anthem, CareSource and Managed Health Services (MHS). MDwise stopped serving HIP and Hoosier Healthwise members on January 1, 2026, and its members moved to one of the 3 remaining plans.
Indiana PathWays for Aging, the Medicaid program for people 60 and older, uses Anthem, Humana and UnitedHealthcare. Each plan keeps its own network of treatment providers, so members check that a provider is in network before admission.
Can You Get Medication-Assisted Treatment Through Indiana Medicaid?
Yes, Indiana Medicaid covers medication for opioid use disorder, because federal law requires every state Medicaid program to cover all FDA-approved medications for opioid use disorder. The SUPPORT Act set that rule in 2018, and the Consolidated Appropriations Act, 2024 made it permanent, according to the Congressional Research Service.
The 3 FDA-approved medications for opioid use disorder are methadone, buprenorphine and naltrexone. Indiana Medicaid covers care in opioid treatment programs and opioid treatment started in a hospital emergency department. Read more about opioid addiction treatment at The Grove Estate.
Contact us today to schedule an initial assessment or to learn more about our services. Whether you are seeking rehab treatment or simply need guidance on your recovery journey, we are here to help.
What Types of Residential Treatment Does Indiana Medicaid Cover?
Indiana Medicaid covers short-term residential addiction treatment at facilities that the Division of Mental Health and Addiction (DMHA) designates for ASAM Level 3.1 or Level 3.5. ASAM Level 3.1 is low-intensity residential care, and ASAM Level 3.5 is high-intensity residential care.
Indiana’s Medicaid substance use disorder waiver, approved by the Centers for Medicare & Medicaid Services (CMS) effective February 2018, made this coverage possible. Before the waiver, a federal rule called the IMD exclusion blocked Medicaid payment for addiction treatment at facilities with more than 16 beds. Residential and inpatient stays need prior authorization from the member’s plan.
Does Indiana Medicaid Cover Outpatient Drug and Mental Health Counseling?
Yes, Indiana Medicaid covers outpatient substance use disorder treatment and intensive outpatient treatment, and Indiana Medicaid covers outpatient mental health care. People with a substance use disorder and a mental health condition get care for both through dual diagnosis treatment.
How Much Does Drug Rehab Cost with Indiana Medicaid?
Most covered addiction treatment costs Indiana Medicaid members little or nothing beyond their monthly HIP POWER Account contribution. The following table lists the main HIP costs, according to FSSA:
| Healthy Indiana Plan cost | Amount |
|---|---|
| POWER Account, health costs covered each year | First $2,500 |
| Monthly POWER Account contribution | $1 to $20, higher for tobacco users |
| HIP Basic | Copayments for most care |
Are you covered for treatment?
The Grove Estate is in-network with Blue Cross Blue Shield and Physicians Health Plan of Northern Indiana, and accepts other commercial plans, such as Cigna and UnitedHealthcare, on an out-of-network basis.
Check Coverage Now!How Do You Apply for Indiana Medicaid for Addiction Treatment?
Indiana residents apply for Medicaid online through the FSSA Benefits Portal or by phone with the Division of Family Resources at 1-800-403-0864. The following are 3 ways to apply for Indiana Medicaid, according to FSSA:
- Applying online through the FSSA Benefits Portal, which needs an email address and a Social Security number.
- Applying by phone with the Division of Family Resources at 1-800-403-0864.
- Applying through the federal Health Insurance Marketplace at HealthCare.gov.
What Is Changing for Healthy Indiana Plan Members in 2027?
Work requirements for Healthy Indiana Plan members ages 19 to 64 begin phasing in on January 1, 2027, under federal law passed in 2025 and Indiana Senate Enrolled Act 1. HIP members need at least 80 hours a month of work, a work program, school or volunteering, unless they qualify for an exemption.
Indiana also checks HIP eligibility at least every 6 months instead of once a year. HIP members in addiction treatment ask FSSA or their plan whether an exemption applies to them.
What Alternative Options Exist if You Don’t Qualify for Indiana Medicaid?
Indiana residents who do not qualify for Medicaid turn to Marketplace insurance, Medicare, state-funded programs or Indiana 211. The following are 4 options for paying for addiction treatment without Indiana Medicaid:
- Marketplace health insurance through HealthCare.gov, which covers substance use disorder treatment.
- Medicare, for people 65 and older or with certain disabilities, covered on The Grove Estate’s Medicare in Indiana page.
- Recovery Works, an FSSA program that pays for treatment for people in the justice system who do not have insurance.
- Indiana 211 and the FSSA list of certified addiction treatment providers, which connect people to treatment providers.
Read more on The Grove Estate’s insurance coverage for addiction treatment in Indiana page, or verify your insurance with The Grove Estate.
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References
- Indiana Health Coverage Programs. Substance Use Disorder Treatment. in.gov
- Indiana FSSA. Healthy Indiana Plan: Am I Eligible; POWER Accounts. in.gov
- Indiana Medicaid. Managed Care Health Plans. in.gov
- Indiana Medicaid. Apply for Coverage. in.gov
- Congressional Research Service. Consolidated Appropriations Act, 2024 (P.L. 118-42): Medicaid and Medicare Provisions (R48075). congress.gov
- KFF. Percent of Substance Use Treatment Facilities Reporting Participation with Insurers (N-SUMHSS 2024). kff.org
- Indiana Capital Chronicle (July 7, 2026). Indiana FSSA shares Medicaid work requirement rules. indianacapitalchronicle.com
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ADDICTION TREATMENTS IN INDIANA
Are you covered for treatment?
The Grove Estate is in-network with Blue Cross Blue Shield and Physicians Health Plan of Northern Indiana, and accepts other commercial plans, such as Cigna and UnitedHealthcare, on an out-of-network basis.
Check Coverage Now!
