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 (FSSA) Office of Medicaid Policy and Planning (OMPP) publishes this notice of proposed changes in payment methodology for Medicaid-enrolled hospice providers to include dual routine home care rates and a service intensity add-on payment.

The OMPP proposes to differentiate payments for routine home care based on the beneficiary's length of stay and implement a service intensity add-on payment in accordance with federal regulations (80 FR 47142). These changes are being implemented by CMS for Medicare hospice payments rates to be budget neutral as required by Section 1814(i)(6)(D)(ii) of the Social Security Act. As Indiana uses the Medicare hospice payment rates adjusted by a wage index for Indiana to determine the Medicaid hospice payment rates, the implementation of this change is also budget neutral.

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 office of the division of family resources, except in Marion County, where public inspection may be made at the Indiana Government Center South, 402 West Washington Street, Room W374, Indianapolis, Indiana.

There will be no public hearing. Written comments may be directed to FSSA, Office of Medicaid Policy and Planning, Attention: Chris Fletcher, 402 West Washington Street, Room W374, MS07, Indianapolis, IN 46207-7083. Correspondence should be identified in the following manner: COMMENT RE: HOSPICE SERVICES. Written comments will be made available for public inspection at the address herein of the OMPP.

John J. Wernert, MD

Secretary

Family and Social Services Administration