05/20/2026
As Indiana explores changes to the Medicaid waiver system, many music therapists are wondering what a move toward “value-based payment” could mean.
In simple terms, this means services may be evaluated not just by the number of hours provided, but by the outcomes they help people achieve.
Importantly, music therapy is not being singled out. If Indiana adopts this approach, it would likely apply across the full array of waiver services.
This concept is not entirely new to Indiana. We already see outcome-based approaches in systems such as Vocational Rehabilitation, where milestone payments are tied to specific achievements like obtaining and maintaining employment. Transportation stipends are another example of payments tied to accomplishing a defined purpose rather than billing in 15-minute units.
The good news is that music therapy is well positioned for this type of system. Every day, music therapists help people improve communication, emotional regulation, health and safety, independence, community participation, and employment outcomes.
Potential benefits could include increased reimbursement for outcome-driven therapy, as well as stronger recognition of music therapy as an evidence-based and cost-effective service. Potential challenges may include increased expectations for standardized data collection and demonstrating measurable outcomes.
AIMT and the Indiana Music Therapy Task Force continue to meet with decision-makers and advocate for music therapy to remain available across the lifespan and accessible to all eligible waiver recipients.
No final decisions have been made, but this could be an important opportunity to demonstrate the measurable value music therapists bring to individuals and families across Indiana.