In accordance with public notice requirements of 42 CFR 447.205 and Section 1902(a)(13)(A) of the Social Security Act, the Indiana Family and Social Services Administration, Office of Medicaid Policy and Planning (OMPP) publishes this notice of proposed changes to the reimbursement methodology for Medicaid services provided by enrolled privately (nonstate) owned intermediate care facilities for the mentally retarded (ICFs/MR) and community residential facilities for the developmentally disabled (CRFs/DD).

The OMPP proposes to modify reimbursement formulas by reducing rates currently paid to ICFs/MR and CRFs/DD under the Medicaid state plan and state regulations at 405 IAC 1-12 by three percent below what would have otherwise been in effect. This reduction shall be effective April 1, 2010. This reduction shall remain in effect through the end of state fiscal year (SFY) 2011, June 30, 2011. Beginning July 1, 2011, such Medicaid rates shall have the three percent reduction removed from the rate then in effect.

This change in reimbursement is necessary in order to avoid a budgetary shortfall and to remain within the available Medicaid appropriation. It is estimated that the fiscal impact of these changes will be a savings of state and federal expenditures of approximately $2.0 million for SFY 2010 and $9.8 million for SFY 2011.

These changes will be adopted in an emergency rule. A copy of this notice is now on file at the Indiana Government Center South, 402 West Washington Street, Room W451 and open for public inspection. Also, a copy of this notice is now available 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 W374, Indianapolis, Indiana.

The proposed changes and proposed rates are available on the Internet at:

Interested parties without Internet access should contact Myers and Stauffer, LC 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: IFSSA, Office of Medicaid Policy and Planning, Attention: Tracy Nguyen, 402 West Washington Street, Room W374, P.O. Box 7083, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: COMMENT RE: ICF/MR AND CRF/DD MEDICAID RATE REDUCTION. Written comments received will be made available for public display at the address herein of the Office of Medicaid Policy and Planning.

Anne Waltermann Murphy

Secretary

Family and Social Services Administration