Indiana Code Title 12. Human Services § 12-15-1-20.4

Sec. 20.4. (a) If a Medicaid recipient is:

ineligible to participate in the Medicaid program during the placement described in subdivision (1) or (2) because of federal Medicaid law, the division of family resources, upon notice that a child has been adjudicated to be a delinquent child and placed in a facility described in subdivision (1) or upon notice that a person is incarcerated in a prison or jail and placed in a facility described in subdivision (2), shall suspend the person's participation in the Medicaid program.

(b) If the division of family resources receives:

regarding a person described in subsection (a)(2) and the department of correction gives the division of family resources at least forty (40) days notice that the person will be released from a facility described in subsection (a)(2), the division of family resources shall take action necessary to ensure that the person is eligible to participate in the Medicaid program upon the person's release, if the person is eligible to participate.

(c) A facility described in subsection (a)(1) shall, not less than forty-five (45) days before the release date of a person placed in the facility as described in subsection (a)(1), provide notice of the person's release date to the division of family resources.  The division of family resources shall take action necessary to ensure that the person is eligible to: