It can be done as I have successfully transitioned a resident from NJ to another state but I think you might want to contact the Medicaid office in the receiving state first to find out what their requirements are as well as their procedures for a transition. They will also be able to confirm for you which facilities in their state accept Medicaid. The process may be a long one as Medicaid beds are sometimes in short supply. Good Luck!
That as far as I know is not easy to do. She would have to be approved for LTC Medicaid in Indiana first, and if she doesn't reside there it may not be possible. LTC Medicaid is handled and administered at the state level. You can contact Indiana social services to see what can be done.
Good Luck!