Participant Directed Services (PDS) / Home And Community Based Waiver 2 (HCB2)

Participant Directed Services/ Home and Community Based Waiver 2 (PDS/HCB2) is an alternative to the traditional service delivery model under the Medicaid Waivers. As Service Advisors, the Area Agency on Aging and Independent Living will provide all case management activities for individuals receiving PDS and blended services (participant directing some services and receiving others from traditional providers). Once a member chooses to participant direct some or all of the waiver services, they will not receive Case Management services from a traditional waiver provider such as a home health agency.

The PDS/HCB 2 program is designed to allow clients to have more choice, flexibility and options regarding their in-home waiver services. Participant Directed is about freedom of choice, and person centered planning. The program gives individuals the power of choosing who will provide services, what services are needed, how services will be provided, when services will be provided and where services will be provided.

Services Available under PDS/HCB2

  • Environmental or minor home adaptations – is funding which is utilized to help create more stability for transfers and ambulation, but must relate to the needs and disability of the client.
  • Goods and services – is funding made available to the client to help purchase items such as incontinent items and personal care goods as long as it is a medical necessity.
  • Home and community supports – is non-residential and non-medical home and community based services and supports that meet the participant’s needs; and constitute a cost effective use of funds.
  • Non-specialized respite care services – is provided to a participant who has care needs beyond normal babysitting or normal care sitting; and in relief of a non-paid primary caregiver.
  • PDS coordination services – includes service advisory and management of funds.


The PDS service option is available to Medicaid waiver members of any age including children. The PDS/HCB2 Medicaid Waiver program operates under Kentucky Administrative Regulations 907 KAR 7:010