In accordance with public notice requirements established at 42 CFR 447.205, the Indiana Family and Social Services Administration, Office of Medicaid Policy and Planning (OMPP) publishes this notice of proposed changes to methods and standards governing reimbursement policy for Medicaid-enrolled physicians.

OMPP proposes to modify the Medicaid reimbursement methodology for physician services by revising the payment rates so that the aggregate Medicaid reimbursement to physicians is equivalent to at least 75% of Medicare reimbursement for the same service. This change shall be effective February 1, 2015.

OMPP is making these changes in accordance with the Healthy Indiana Plan (HIP) 2.0 section 1115 waiver application submitted to the Centers for Medicare and Medicaid Services (CMS). It is estimated that the fiscal impact of these changes will be an increase in state and federal expenditures of approximately $94.2 million for FFY 2015 (federal share of $62.7 million and state share of $31.5 million) and $127.9 million for FFY 2016 (federal share of $85.2 million and state share of $42.7 million).

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

There will be no public hearing. Anyone who wishes to comment on the proposed changes may submit written comments to: FSSA, Office of Medicaid Policy and Planning, Attention: Yvonne Burke, 402 West Washington Street, Room W382, P.O. Box 7083, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: COMMENT RE: CHANGES TO PHYSICIAN REIMBURSEMENT. All written comments concerning this change received by OMPP will be available for public inspection at the Office of Medicaid Policy and Planning, 402 West Washington Street, Room W382, Indianapolis, Indiana.

John J. Wernert, M.D.

Secretary

Family and Social Services Administration