MedicaidPrior AuthHigh impact
[Indiana] Partial Hospitalization Program – Reminders
CareSource·IN · Psychiatry·Provider Bulletin
Effective date
Jul 14, 2026
We identified it
Jul 15, 2026
Summary
CareSource issued a reminder bulletin on Indiana Medicaid PHP services clarifying prior authorization requirements, billing limits, and service standards. Key requirements include: prior authorization is mandatory; only one H0035 unit per date of service is allowed; services must be provided at least four days per week for 4-6 hours of active therapy; and inpatient services cannot be billed on the same date as PHP. Failure to comply may result in claim denials or recoupments.
Action Required
Immediately: Billing team must implement the following controls in the billing system for Indiana Medicaid PHP claims: (1) Require prior authorization before claims submission for H0035 services; (2) Enforce limit of one H0035 unit per date of service; (3) Prevent billing of inpatient services on the same date as H0035; (4) Flag claims for post-payment review to verify minimum 4-6 hours of active therapy was provided; (5) Validate that services were delivered at least 4 days per week. Front desk and clinical staff must ensure all admission documentation includes individualized treatment plans with measurable, functional, and time-framed goals. Providers must include complete clinical documentation at time of admission for authorization requests. Update encounter forms and EMR templates to prompt for required documentation elements. Billing team should establish internal audit process to identify non-compliant claims before submission. Inform all behavioral health providers of these requirements. Failure to comply will result in claim denials and potential recoupments.