Indiana:
PathWays for Aging HCBS Waiver — Structured Family Caregiving

SFC is a live-in daily-care arrangement

The August 2026 PathWays waiver describes a principal caregiver living with the member, with provider oversight and a per-day stipend. The agency’s Medicaid reimbursement also supports its responsibilities, so it should not be presented as the family’s earnings. Request the caregiver agreement: what amount is paid, which days qualify, what happens during an absence, and how replacement care is arranged. Compare agreements using the same assumptions instead of comparing an agency’s reimbursement with another provider’s caregiver offer.

Identify the age group and waiver

FSSA distinguishes the PathWays waiver for people 60 and older from Health and Wellness for those 59 and younger. These waiver routes require Medicaid eligibility and nursing-facility level of care. A diagnosis or family relationship alone does not establish access. For SFC, discuss whether sharing a home is suitable and whether the proposed caregiver can meet assessed needs. Ask the service coordinator to identify the authorized service before treating informal support as paid work.

PathWays coverage and the HCBS waiting list differ

FSSA explicitly separates enrollment in the broader PathWays program from the HCBS waiver waiting list. Being enrolled in the health program does not mean SFC can start immediately. Invitations depend on available waiver capacity and applicable priority rules, rather than a guaranteed position that counts down predictably. Confirm placement and contact details through the official dashboard or aging agency. Keep the level-of-care date and any invitation letter; respond to the instructions addressed to your household.

Use the coordinator and the SFC provider

Indiana permits spouse participation in SFC under the approved arrangement. That should not be generalized to every self-directed or agency attendant service. Tell the coordinator the caregiver’s relationship and any legally responsible role, then identify an enrolled SFC agency. Ask about training, home review, backup caregivers and ongoing contact. The state’s SFC provider fact sheet includes business-certification paperwork for agencies; an individual family caregiver should obtain the agency’s own onboarding checklist rather than apply as an agency owner.

Daily documentation is not an hourly-pay assumption

Obtain the provider’s instructions for documenting care, reporting absences and checking stipend statements. Do not manufacture hourly timesheets from the time spent together at home. For any separately authorized hourly service, ask its provider about Electronic Visit Verification and avoid assuming that SFC instructions apply. Keep the written plan and provider agreement together, and notify the coordinator when living arrangements or care needs change so the authorized service can be reviewed.

Your next steps

1. Contact the aging agency or current PathWays coordinator about waiver access.
2. Confirm assessment, Medicaid eligibility and any waiting-list status.
3. Discuss SFC suitability, co-residence and the caregiver relationship.
4. Choose an enrolled SFC provider and review its caregiver agreement.
5. Complete training and confirm the authorized service start and daily records.

Explore a pay scenario

The table uses a hypothetical amount of $80.00 per day. This is not a rate verified for this state. Approved units depend on the assessment and written plan; the table does not establish a maximum or entitlement.

Monthly average = weekly × 52 ÷ 12. Overtime and taxes are not calculated.

Does caregiver pay qualify for IRS Notice 2014-7?

IRS Notice 2014-7 can exclude certain qualifying Medicaid waiver payments from federal gross income when the care recipient lives in the provider’s home. Sharing a home alone is not enough: the payment and program must qualify. This is not an exemption for all caregiver wages, all taxes or all state programs. Ask payroll which payments are covered and check the IRS guidance or a qualified tax adviser. Our calculator does not apply a tax exemption.

Questions families ask

Official sources and review notes

• PathWays waiver specification, August 2026
• FSSA Structured Family Caregiving provider fact sheet
• SFC provider questions: spouses and daily payment
• PathWays provider questions
• HCBS waiver waiting-list information
• PathWays HCBS waiting process checklist

Sources describe the named programs; they do not endorse this website. Rules and provider arrangements can change. Check the linked agency before making a financial decision.