In accordance with the public notice requirements of 42 CFR 447.205, the Indiana Family and Social Services Administration, Office of Medicaid Policy and Planning (OMPP) publishes this notice of the state's intent to establish a Program of All-Inclusive Care for the Elderly (PACE) and of the proposed reimbursement methodology.

OMPP elects to implement PACE in accordance with 42 CFR Part 460. The establishment of this program will provide comprehensive long-term services and support to Medicaid and Medicare enrollees and will allow most participants to receive care at home rather than receive care in a nursing home.

The proposed average PACE rate shall equal the statewide median nursing facility allowable costs for the direct care (as adjusted quarterly using each facility's Medicaid case mix index (CMI)), indirect care, capital, administrative and therapy components, as determined July 1 of each year, multiplied by 88%.

These changes will result in estimated Medicaid reimbursement to PACE providers of approximately $10.9 million total state and federal funds for State Fiscal Year 2013 and $14.5 million for State Fiscal Year 2014.

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

When the proposed changes become available, they will be posted 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: Susan Hartman, Indiana Government Center South, 402 West Washington Street, Room W374, MS07, Indianapolis, IN 46207. Correspondence should be identified in the following manner: "COMMENT RE: ESTABLISHMENT OF PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE)". 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