The Family Supports Waiver in Indiana helps people with intellectual and developmental disabilities who live with their families get services at home and in the community, such as respite, day habilitation and Participant Assistance and Care. In 2026 the program changed in several important ways: it reached capacity, new applicants now wait on a list, a new assessment tool arrived, and an amendment took effect in August. Here is what Indianapolis families need to know, in plain language.
Key takeaways
- The Family Supports and CIH waivers reached maximum capacity in December 2025, and invited applicants were placed on a waiting list in February 2026.
- Indiana began using interRAI assessments for FS and CIH on January 1, 2026. Eligibility rules did not change.
- An amendment effective August 2026 changed rules for paid family caregivers, including a 40-hour weekly limit.
- Indiana is planning a Waiver Reset, with a new Youth Waiver targeted for July 1, 2027.
- Apply anyway. Getting on the list now protects your place.
What the Family Supports Waiver in Indiana is
The Family Supports Waiver (often called FSW or FS) is a Medicaid home and community-based services waiver run by Indiana’s Bureau of Disabilities Services (BDS), part of FSSA. It provides limited, non-residential supports to people with developmental disabilities, so they can stay at home with family or live in the community rather than in an institution.
Who may qualify
According to Indiana Medicaid, applicants generally must:
- Have an intellectual disability or a similar developmental disability (for example autism, cerebral palsy or epilepsy) that began before age 22 and is expected to continue
- Have substantial limits in major life areas and meet the ICF/IID level of care
- Live in, or be moving to, a non-institutional, community setting
- Meet Medicaid financial rules (for children under 18, parental income is not counted)
The budget cap
FS has an annual cap on waiver services. Indiana’s waiver documents set that cap at $26,482 per year for any combination of services, and part of that budget goes to case management. Your case manager helps you build a plan within that amount.
What services the waiver can pay for
Each person’s plan is different, and your case manager will help decide which services fit. Commonly used FS services include:
- Participant Assistance and Care (PAC): hands-on help at home and in the community with daily activities, personal care and supervision
- Respite: short-term care that gives family caregivers a break
- Day habilitation: structured activities to build skills and independence
- Community habilitation, transportation and therapies such as music or recreational therapy
- Behavioral supports, home modifications and specialized equipment, within program limits
In Indianapolis, Aken provides several of these BDDS waiver services, including Participant Assistance and Care services in Indianapolis, respite care and day habilitation.
2026 change 1: capacity and the waiting list
According to The Arc of Indiana’s waiver updates, the Family Supports and CIH waivers hit their maximum capacity in December 2025. In February 2026, people who had been invited to start the process for FS or CIH were placed on a new waiting list.
What this means for your family:
- Still apply. All Indiana waivers currently have waiting lists, and advocates urge families to apply anyway. Your application date matters.
- Check your status. Families on the list can check status through the state’s waitlist portal or by calling their BDS district office.
- Keep your contact details current so you do not miss an invitation.
- Look at other supports in the meantime, such as school services, Medicaid state plan benefits and community programs.
2026 change 2: the interRAI assessment
Beginning January 1, 2026, BDS started using a family of assessment tools called interRAI for people receiving or seeking FS or CIH. It replaced the older Level of Care Screening Instrument. The tool used depends on age: one for very young children, one for ages 4 to 17, and one for adults 18 and older.
Important points for families:
- Eligibility rules for FS and CIH did not change. The main change is the tool used to assess level of care.
- People on the FS waiting list are not assessed until they are invited off the list.
- Current participants are contacted ahead of their annual review.
- You still receive a written decision with appeal rights, whether approved or denied.
2026 change 3: the August 2026 amendment
Indiana’s FSSA fact sheet on the August 2026 FS amendment describes several updates. The ones families ask about most:
- Paid family caregivers: relatives and legal guardians who are paid caregivers can be paid for no more than 40 hours per week across PAC, Respite and Workplace Assistance. Paid family caregiving is limited to Respite, PAC, Transportation and Workplace Assistance.
- Benefits Counseling: a new maximum of 6 hours per year.
- Home modifications: the maintenance and repair limit rose from $500 to $1,000, and bidders must visit the home before bidding.
- Remote Supports and Day Habilitation: clearer definitions and standards.
- Case management: new standards, including case notes within seven calendar days.
The Arc of Indiana also reports a reduced reimbursement rate for paid caregivers under the amendments. If your family relies on a paid relative for PAC, talk with your case manager about how these limits affect your plan, and whether agency staff could fill some hours.
What is coming next: the Waiver Reset
FSSA is planning a larger redesign, called Waiver Reset, that will eventually replace the CIH, FS, Health and Wellness and TBI waivers. The state is targeting a new Youth Waiver for July 1, 2027, starting with youth ages 0 to 21 currently on FS, with new adult waivers targeted for 2028. The state says current eligibility criteria will carry over and current recipients will not need to reapply. Final details are still being decided, so watch for updates from BDS and The Arc of Indiana.
A related change for providers: Indiana Medicaid placed a six-month moratorium, starting August 1, 2026, on new provider certifications and enrollments for certain waiver services, including FS and CIH. Families already working with an enrolled provider are not affected by that rule.
Practical steps for Indianapolis families
- Apply online through the BDS Gateway, and apply for Medicaid separately if needed.
- Keep records of diagnoses, school evaluations and medical history from before age 22.
- Ask your case manager how the August 2026 changes affect your current plan.
- Plan respite early, especially if a parent is the main caregiver.
- Get to know local providers in Marion County and nearby counties so you are ready when services start.
For background, see our post What is BDDS and how can it help your family. If you have questions about services or payment, call us to talk through your options.
Frequently asked questions
How long is the waiting list for the Family Supports Waiver in Indiana?
The state has not published a single wait time. FS reached capacity in December 2025 and invited applicants were placed on a waiting list in February 2026. Contact your BDS district office for your status.
Can a parent be paid as a caregiver on the FS waiver?
In some cases. Under the August 2026 amendment, paid relatives and legal guardians are limited to 40 hours a week across certain services. Parents of minors and spouses are subject to additional rules, so ask your case manager.
What is the annual cap on the Family Supports Waiver?
Indiana’s waiver documents set the FS cap at $26,482 per year for all waiver services combined, including case management.
Do I need to reapply when the Waiver Reset happens?
The state says current recipients will not need to reapply and eligibility criteria will carry over. Details are still being finalized.
Aken Home Health and Home Care serves Indianapolis and surrounding counties. Call our office at 317-734-3934 (Mon to Fri, 8am to 5pm) or our 24/7 line at 574-320-4705, or request a free consultation.
