Behavioral Health Services in Indiana provide assessment, therapy, crisis intervention, and recovery supports for individuals experiencing mental health conditions, emotional disturbances, or substance use disorders. These services are authorized under Indiana Medicaid State Plan benefits, Home and Community-Based Services (HCBS) Waivers, and other state-funded initiatives to promote stability, resilience, and quality of life.

1. GOVERNING AGENCIES

Agency: Indiana Family and Social Services Administration (FSSA) — Division of Mental Health and Addiction (DMHA)
Role: Oversees Behavioral Health Services delivery standards, provider certification, and program quality monitoring

Agency: Indiana Office of Medicaid Policy and Planning (OMPP)
Role: Administers Medicaid funding for Behavioral Health Services and manages provider enrollment, claims, and reimbursement

Agency: Centers for Medicare & Medicaid Services (CMS)
Role: Provides federal oversight ensuring Medicaid-funded Behavioral Health Services align with HCBS person-centered planning, quality of care, and clinical effectiveness standards

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2. BEHAVIORAL HEALTH SERVICE OVERVIEW

Behavioral Health Services address the emotional, psychological, and substance use needs of participants through person-centered, evidence-based interventions.

Approved providers may deliver:

• Behavioral health assessments and diagnostic evaluations
• Individual, group, and family therapy sessions
• Psychiatric services, including medication management
• Mobile crisis intervention and stabilization services
• Community-based recovery support and skills training
• Behavior support planning and positive behavioral interventions
• Substance use disorder treatment, including outpatient and recovery services
• Trauma-informed care services for individuals with complex needs

All services must align with the participant’s Individualized Treatment Plan (ITP) and comply with Medicaid, HCBS, and DMHA standards.

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3. LICENSING & PROVIDER APPROVAL REQUIREMENTS

Prerequisites:

• Register business entity with the Indiana Secretary of State
• Obtain EIN from the IRS and NPI (Type 2)
• Obtain certification as a Community Mental Health Center (CMHC), Behavioral Health Clinic, or Specialized Behavioral Health Provider through DMHA if applicable
• Enroll as a Medicaid Behavioral Health Services Provider through the Indiana Medicaid Provider Enrollment Portal
• Maintain professional liability, malpractice, and general liability insurance
• Develop policies for behavioral health assessment, treatment planning, service delivery, documentation, participant rights, and emergency response
• Ensure clinical staff meet licensure, credentialing, and ongoing training standards

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4. INDIANA PROVIDER ENROLLMENT PROCESS

Initial Interest and Application:

• Submit Provider Enrollment Application through the Indiana Medicaid Provider Portal for Behavioral Health Services

Application and Documentation Submission:

• Submit Articles of Incorporation, EIN/NPI confirmation, DMHA certification (if required), insurance certificates, operational policies, and staff licensure records

Program Readiness Review:

• DMHA and/or OMPP reviews clinical service models, supervision structures, emergency procedures, participant rights protections, and documentation systems

Approval & Medicaid Enrollment:

• Upon approval, providers are assigned billing codes for therapy services, psychiatric services, mobile crisis response, skills training, and behavioral supports

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5. REQUIRED DOCUMENTATION

• Articles of Incorporation or Business License
• IRS EIN confirmation
• NPI confirmation
• DMHA Behavioral Health Provider Certification (if applicable)
• Proof of general liability, malpractice, and professional insurance

Behavioral Health Services Policy & Procedure Manual including:

• Participant intake, assessment, and individualized treatment planning procedures
• Crisis intervention and emergency response protocols
• Therapy session documentation standards and clinical progress monitoring
• Participant rights protections, HIPAA compliance, and grievance resolution procedures
• Staff credentialing, licensure verification, and ongoing supervision documentation
• Medicaid billing and audit-ready clinical documentation practices

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6. STAFFING REQUIREMENTS

Role: Clinical Director / Behavioral Health Program Supervisor
Requirements: Licensed Clinical Social Worker (LCSW), Licensed Clinical Professional Counselor (LCPC), Licensed Psychologist (PhD/PsyD), or Licensed Psychiatrist (MD/DO), clinical supervision experience; background clearance

Role: Behavioral Health Clinicians (LCSWs, LMHCs, LMFTs, Psychologists, Psychiatrists)
Requirements: Active Indiana license in discipline, CPR/First Aid certification preferred, background screening clearance

Role: Behavioral Health Support Specialists / Peer Recovery Coaches
Requirements: Certification in peer recovery or behavioral health support preferred, background screening clearance

All staff must complete:

• Trauma-informed care, crisis response, and de-escalation training
• HIPAA compliance and participant confidentiality training
• Abuse prevention, emergency response, and safety training
• Annual continuing education and clinical competency reassessments

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7. MEDICAID WAIVER PROGRAMS AND STATE PLAN COVERAGE

Behavioral Health Services are reimbursable through:

• Indiana Medicaid State Plan Behavioral Health Services

HCBS Waivers:

• Community Integration and Habilitation (CIH) Waiver
• Family Supports Waiver (FSW)
• Aged and Disabled (A&D) Waiver (limited behavior support services)
• Traumatic Brain Injury (TBI) Waiver

Approved providers may deliver:

• Behavioral health therapy and counseling
• Psychiatric evaluation and medication management
• Mobile crisis intervention and stabilization
• Behavior support planning and skills development
• Recovery support and relapse prevention services

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8. TIMELINE TO LAUNCH

Phase: Business Formation, Licensing/Certification, and Compliance Setup
Timeline: 2–4 months

Phase: Staff Hiring, Credentialing, and Behavioral Health Program Development
Timeline: 2–4 months

Phase: Indiana Medicaid Enrollment and Readiness Review
Timeline: 60–90 days

Phase: Medicaid Billing Setup and Behavioral Health Service Launch
Timeline: 30–45 days

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9. CONTACT INFORMATION

Indiana Family and Social Services Administration (FSSA) — Division of Mental Health and Addiction (DMHA)
Website: https://www.in.gov/fssa/dmha/

Indiana Medicaid Provider Portal
Website: https://www.in.gov/medicaid/providers/

Centers for Medicare & Medicaid Services (CMS)
Website: https://www.cms.gov/

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10. SCOPE OF WORK

• Business registration, DMHA certification (if needed), and Medicaid enrollment guidance
• Development of Behavioral Health Services Policy & Procedure Manual
• Staff credentialing templates, assessment and treatment plan forms, and session documentation templates
• Medicaid billing system setup and audit-ready claims management support
• Website, domain, and professional branding development
• Clinical documentation compliance systems for emergency response, incident reporting, and outcome tracking
• Quality assurance systems for service monitoring, participant satisfaction, and clinical effectiveness
• Partnership development with hospitals, crisis centers, schools, and outpatient providers