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 (NFs).

The OMPP proposes to continue the three percent (3%) reduction that is currently set to expire on June 30, 2017, for rates paid to nursing facilities, under the Medicaid state plan and state regulations at 405 IAC 1-14.6. This three percent (3%) reduction will remain in effect through June 30, 2019.

The change in reimbursement is necessary in order to remain within the available Medicaid appropriation. It is estimated that the fiscal impact of continuing the three percent (3%) rate reduction will be annual savings of state and federal expenditures of approximately $13.2 million for Federal Fiscal Year 2017 (federal share of $8.8 million and state share of $4.4 million) and $51.2 million for Federal Fiscal Year 2018 (federal share of $33.6 million and state share of $17.6 million), as compared to state and federal expenditures without the three percent (3%) reduction.

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

There will be no public hearing. Written comments may be directed to IFSSA, Office of Medicaid Policy and Planning, Attention: Derris Harrison, 402 West Washington Street, Room W374, MS07, Indianapolis, Indiana 46207-7083. Correspondence should be identified in the following manner: "COMMENT RE: EXTENSION OF THE 3% RATE REDUCTION FOR NFs". Written comments will be made available for public inspection at the address herein of the Office of Medicaid Policy and Planning.

Jennifer Walthall, M.D., MPH

Secretary

Family and Social Services Administration