Under IC 4-22-2-24, notice is hereby given that on February 23, 2017, at 9:00 a.m., at the Indiana Government Center South, 402 West Washington Street, Conference Center Room 4, Indianapolis, Indiana, the Office of the Secretary of Family and Social Services – Office of Medicaid Policy and Planning will hold a public hearing on a proposed rule amending the following sections: 405 IAC 5-24-2 to update the definition of "pharmacy services"; 405 IAC 5-24-4 to update the reimbursement methodology for legend drugs; 405 IAC 5-24-5 to remove insulin from the calculation of reimbursement for nonlegend drugs; and 405 IAC 5-24-6 to update terminology and modify the calculation of the Medicaid professional dispensing fee.

Pursuant to IC 4-22-2-24(d)(3), the Indiana Family and Social Services Administration (FSSA) – Office of Medicaid Policy and Planning (OMPP) proposes to amend 405 IAC 5-24 to modify the reimbursement methodology for legend drugs, modify the calculation of the professional dispensing fee, and update and clarify definitions and terminology. These changes are necessary in order to comply with federal regulations set forth in the Covered Outpatient Drugs final rule issued by the Centers for Medicare and Medicaid Services (CMS) on January 21, 2016.

All parties interested in the proposed rule are invited to attend the public hearing and to offer public comments. In lieu of attendance at the public hearing, written comments may be sent to: FSSA, Attention: Leslie Huckleberry c/o Marc Shirley, 402 W. Washington St., Room W451, Indianapolis, IN 46204. Correspondence should be identified in the following manner: "COMMENT RE: LSA Document #16-530, Pharmacy Reimbursement Rule". All written comments concerning the rule received by the FSSA - OMPP will be available for public inspection at FSSA's Office of General Counsel, Indiana Government Center South, 402 West Washington Street, Room W451, Indianapolis, Indiana.

Copies of the proposed rule and this notice are now available on the FSSA website at:

Copies of these rules are now on file at the Indiana Government Center South, 402 West Washington Street, Room W451 and Legislative Services Agency, Indiana Government Center North, 100 North Senate Avenue, Room N201, Indianapolis, Indiana and are open for public inspection.