In accordance with the 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 governing reimbursement policy for 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 the rate setting formula for ICFs/MR and CRFs/DD (codified at 405 IAC 1-12) by clarifying cost reporting and cost classification policies, issuing final audited rates, and making changes to provider reimbursement dispute resolution procedures. The OMPP is making the change to issuing final audited Medicaid rates to comply with Public Law 229-2011, SECTION 126.

These changes are not expected to result in an increase or decrease in aggregate annual Medicaid reimbursement to ICFs/MR or CRFs/DD, since issuing the audited Medicaid rate only impacts the timing of recovery, and changes in the cost reporting and cost classification policies are clarifying OMPP policy.

Copies of this notice are 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, P.O. Box 7083, Indianapolis, Indiana.

Copies of the public notice are available on the internet at:

There will be a public hearing, and announcement of that public hearing published in the notice of public hearing, for the promulgation of the administrative rule addressing these changes. Anyone who wishes to comment on the proposed changes may submit written comments to: IFSSA, Office of Medicaid Policy and Planning Attention: Tracy Patterson, 402 W. Washington St., Room W374, P.O. Box 7083, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: "COMMENT RE: NOTICE REGARDING CHANGES TO RATE SETTING CRITERIA FOR ICFs/MR AND CRFs/DD". All written comments concerning this change received by OMPP will be available for public inspection at the OMPP, 402 West Washington Street, Room W374, Indianapolis, Indiana.

Michael A. Gargano

Secretary

Family and Social Services Administration