Under IC 4-22-2-24, notice is hereby given that on May 22, 2008, at 9:00 a.m., in the Indiana Government Center-South, 402 West Washington Street, Conference Center Room 5, Indianapolis, Indiana, the Office of the Secretary of Family and Social Services (FSSA) will hold a public hearing on a proposed rule that amends the Medicaid reimbursement methodology for Medicaid-enrolled nonstate owned intermediate care facilities for the mentally retarded (ICFs/MR) and community residential facilities for the developmentally disabled (CFs/DD).

In accordance with public notice requirements established at IC 4-22-2-24(d), 42 CFR 447.205, and Section 1902(a)(13)(A) of the Social Security Act,, FSSA and the Office of Medicaid Policy and Planning (OMPP) publish this notice of proposed changes to methods and standards governing reimbursement policy for Medicaid-enrolled nonstate owned intermediate care facilities for the mentally retarded (ICFs/MR) and community residential facilities for the developmentally disabled (CRFs/DD).

OMPP proposes to modify the existing reimbursement methodology at 405 IAC 1-12 to reduce the provider assessment percentage from six percent to five and one-half percent In addition, a fixed rate reduction factor will be deducted from each provider's Medicaid reimbursement rate, by licensure level, to reflect the corresponding reduction of federal match dollars. This change is necessary in order to conform to a change in federal law that temporarily reduces the allowable amount that can be collected from a health care-related tax. See the Tax Relief and Health Care Act of 2006, Public Law 109-432, Section 403 and 72 FR 13726 (March 23, 2007). This reduction will be in effect through September 30, 2011. This change is expected to result in an estimated total reduction in payments to providers of $3.7 million ($1.4 million from assessments that will not be collected that would have constituted the state share and $2.3 million in corresponding federal match).

The proposed changes and proposed rates are available on the Internet at www.mslcindy.com. Interested parties without Internet access should contact Myers and Stauffer, LLC at (800) 877-6927 to obtain copies of the proposed changes and proposed rates.

Anyone who wishes to comment on the proposed changes may submit written comments to: OMPP, Attention: Pat Nolting, 402 West Washington Street, Room W382, P.O. Box 7083, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: COMMENTS RE: PROPOSED CHANGES TO GROUP HOME REIMBURSEMENT SYSTEM. All written comments concerning the rule received by OMPP will be available for public inspection at the Office of Medicaid Policy and Planning, 402 West Washington Street, Room W382, Indianapolis, IN 46204.

Copies of these rules are now on file at the Indiana Government Center-South, 402 West Washington, Room W451 and Legislative Services Agency, One North Capitol, Suite 325, Indianapolis, Indiana and are open for public inspection.