10/21/2026
Indiana Medicaid Billing Alert: New Claim Denial Rules Effective October 28, 2026
For effective for dates of service on or after October 28, 2026, Indiana Medicaid will deny claim details when any of the following procedure codes are billed with both modifier HQ and Place of Service (POS) code 12 – Home:
• T2033 – Residential care (Participant Assistance and Care)
• S5151 – Unskilled respite care, not hospice
• T2016 – Residential habilitation
Claims submitted with this combination will be denied with EOB code 4406. Recommended provider actions:
✅ Review billing procedures for the affected waiver services.
✅ Verify that modifiers and place-of-service codes accurately reflect where and how services were delivered.
✅Ensure modifier HQ is not used with POS code 12 for the affected services.
✅ Update claim-submission workflows to reduce preventable denials.
Indiana home care providers should take this opportunity to review their billing practices before the effective date. Accurate claim coding is essential to reducing denials and protecting reimbursement.
Paradigm helps home care agencies navigate evolving Medicaid billing requirements, manage claims, and address reimbursement challenges.