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 for nursing facilities.

The OMPP proposes to modify the rate setting formula for nursing facilities (codified at 405 IAC 1-14.6) to address appeal issues. Specifically, direct care reimbursement for rental costs of low air loss mattresses, pressure support surfaces, and oxygen concentrators will be limited to not more than $1.50 per resident day.

As funding for this change will come from funds obtained through a reduction in the report card score add-on, it is not anticipated that there will be a fiscal impact on aggregate Medicaid expenditures.

A copy of this notice is now on file at the Indiana Government Center South, 402 West Washington Street, Room W451, Indianapolis, Indiana 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.

Written comments may be directed to IFSSA, Office of Medicaid Policy and Planning, Attention: Joy Heim, 402 West Washington Street, Room W374, MS07, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: "COMMENT RE: NOTICE REGARDING CHANGES TO DIRECT CARE RATE SETTING CRITERIA FOR NURSING FACILITIES, 405 IAC 1-14.6". Written comments will be made available for public inspection at the address herein of the OMPP.

Michael Gargano

Secretary

Office of the Secretary of Family and Social Services