Indiana Home Care Agency Regulations: Licensing, Background Checks, and What to Verify

You're about to let a stranger into your parent's home. They'll have access to the medicine cabinet, the checkbook, and a vulnerable person who may not be able to report problems. Indiana regulates this — but the rules only protect your parent if you know what to verify before signing a contract.

Two Types of Licensed Agencies

Indiana draws a hard legal line between non-medical and medical home care:

Personal Services Agencies (PSAs) provide non-medical care — bathing, dressing, meal preparation, housekeeping, companionship. They're licensed under Indiana Code 16-27-4 and regulated by the Indiana Department of Health (IDOH) under 410 IAC 17.

Home Health Agencies (HHAs) provide skilled clinical services — nursing, physical therapy, wound care. They must hold an HHA license from IDOH and, as of July 1, 2026, must also be Medicare-certified.

PSAs are specifically prohibited from using "health" or "nursing" in their name or advertising. Operating an unlicensed home health agency is a Class A misdemeanor under Indiana Code 16-27-1-15. If an agency claims to provide both medical and non-medical care, they need both licenses.

Background Check Requirements

Indiana requires national criminal background checks including FBI fingerprinting for all PSA owners, administrators, and direct care staff. This covers:

• National sex offender registry
• National criminal history (FBI fingerprint check)
• State criminal history
• Abuse/neglect registry checks

Effective March 25, 2026, PSAs operating as Attendant Care and Home and Community Assistance waiver providers face enhanced oversight including a specific license endorsement, mandatory annual surveys, and strict incident reporting requirements.

What to Verify Before Hiring

Before contracting with any home care agency, verify these items:

1. Check licensure — search the IDOH database for active PSA or HHA licenses. An expired or suspended license means the agency is operating illegally
2. Ask for the background check policy — reputable agencies will show you their screening process. If they won't discuss it, walk away
3. Verify Medicaid enrollment — if your parent will use Medicaid waiver services, confirm the agency is enrolled in the Indiana Health Coverage Programs using the IHCP Provider Locator
4. Ask about training — what orientation and ongoing training do aides receive? Dementia care, fall prevention, and infection control training should be standard
5. Check complaint history — file a public records request with IDOH or check for deficiency citations. The CMS Form 2567 documents violations found during surveys

Electronic Visit Verification (EVV)

Indiana requires all home care agencies providing personal care and home health services to use electronic visit verification. EVV systems record when the aide arrives and leaves, confirming that authorized services were actually delivered.

For families, EVV provides accountability. You can request EVV reports from the agency to verify that your parent is receiving the hours billed. If discrepancies appear, report them to the Managed Care Entity (if waiver-funded) or directly to IDOH.

Filing a Complaint

If you suspect neglect, abuse, or regulatory violations by a home care agency:

• IDOH Healthcare Facility Complaint Program — file online at the IDOH website or call 1-800-246-8909
• Adult Protective Services — for suspected abuse or neglect of a vulnerable adult
• The MCE — if services are funded through the PathWays waiver, report quality concerns to the Managed Care Entity's member services

Federal law requires facility employees, managers, and contractors to immediately report any reasonable suspicion of a crime against a resident to IDOH and local law enforcement.

For families navigating the full process of finding, vetting, and coordinating home care services through Indiana's Medicaid system, the Indiana Home Care, Waivers & Support Guide covers agency selection alongside waiver enrollment, care plan development, and ongoing oversight.

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