Under IC-4-22-2-24, notice is hereby given that on June 30, 2009, at 9:00 a.m. EDT, at the Indiana Government Center South, 402 West Washington Street, Conference Center Room 20, Indianapolis, Indiana, the Office of the Secretary of Family and Social Services will hold a public hearing on a proposed rule to add 405 IAC 1-10.5-5 to set forth Medicaid reimbursement policy associated with specified hospital acquired conditions.

In accordance with public notice requirements established at 42 CFR 447.205 and IC 4-22-2-24(d), the Indiana Family and Social Services Administration, Office of Medicaid Policy and Planning publishes this notice of proposed changes to Medicaid reimbursement policy associated with specified hospital acquired conditions. On August 19, 2008, CMS published a final rule in the Federal Register at 73 FR 48471 instituting a similar policy for Medicare reimbursement of hospital acquired conditions. The final rule stipulates that inpatient hospital discharges containing a specified hospital acquired condition will not be assigned to a higher paying DRG. On July 31, 2008, CMS issued a letter to state Medicaid directors encouraging states to implement hospital acquired conditions policies that align with Medicare. As such, the agency is promulgating this rule. It is estimated that the fiscal impact of these changes will result in an estimated decrease in annual Medicaid expenditures of approximately $60,000 (federal share - $39,000; state share - $21,000).

All parties interested in the rule are invited to attend the hearing and offer public comments. In lieu of attendance at the hearing, written comments may be directed to IFSSA, Attention: Scott Linneweber, 402 West Washington Street, Room W451, Indianapolis, Indiana 46204. Correspondence should be identified in the following manner: "COMMENT RE: LSA DOCUMENT #09-202 PROPOSED CAPITAL HOSPITAL ACQUIRED CONDITIONS RULE AMENDMENT". Written comments received will be made available for public display at the Office of Medicaid Policy and Planning, 402 West Washington Street, Room W382, Indianapolis, IN 46204.

If an accommodation is required to allow an individual with a disability to participate in this public meeting, please contact Scott Linneweber (317) 233-0024 at least 48 hours prior to the meeting.

Copies of proposed rule (405 IAC 1-10.5-5) are now available (along with copies of this public notice) and may be inspected by contacting the local County Division of Family Resources office, except in Marion County, where public inspection may be made at 402 West Washington Street, Room W382, Indianapolis, Indiana.

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