Under IC 4-22-2-24, notice is hereby given that on March 1, 2018, at 10:00 a.m., at the Indiana Government Center South, 402 West Washington Street, Conference Center Room #14, Indianapolis, Indiana, the Office of the Secretary of Family and Social Services – Division of Office of Medicaid Policy and Planning will hold a public hearing on a proposed rule amending 405 IAC 1-8-5, 405 IAC 1-10.5-7, and 405 IAC 1-14.6 to amend rules applying to the hospital assessment fee.

This rule will amend 405 IAC 1-8-5 to extend the outpatient hospital assessment fee to June 30, 2019, in accordance with 2017 House Enrolled Act (HEA) 1001 (P.L. 217-2017), remove the outpatient hospital adjustment factors, and remove the 6-month minimum time period for changes to the adjustment factors. Amends 405 IAC 1-10.5-7 to extend the inpatient hospital assessment fee to June 30, 2019, in accordance with 2017 House Enrolled Act (HEA) 1001 (P.L. 217-2017), remove the inpatient hospital adjustment factors, and remove the 6-month minimum time period for changes to the adjustment factors.

This rule will also amend 405 IAC 1-14.6-7 to modify the Medicaid reimbursement rule for covered nursing facility services by extending to June 30, 2019, the SCU add-on, the quality rate add-on, and forgoing the application of the 3.3% inflation reduction factor that expired on June 30, 2017. Amends 405 IAC 1-14.6-9 to modify the Medicaid reimbursement rule for covered nursing facility services by extending to June 30, 2019, the increased profit add-on percentages and overall rate ceilings that expired on June 30, 2017. Amends 405 IAC 1-14.6-18 to modify the Medicaid reimbursement rule for covered nursing facility services by extending to June 30, 2019, the increased owner, related party, and management compensation limits that expired on June 30, 2017. Amends 405 IAC 1-14.6-24 to modify the Medicaid reimbursement rule for covered nursing facility services by extending to June 30, 2019, the quality assessment fee that expired on June 30, 2017.

Pursuant to IC 4-22-2-24(d)(3), the Indiana Family and Social Services Administration (FSSA) – Office of Medicaid Policy and Planning (OMPP) has determined that changes to the current rules are necessary to comply with state law and bring the administrative rules into conformity with the authorized time limits of the enabling statutes.

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: Jeremy Hoffman c/o Chris Fletcher, 402 W. Washington St., Room W451, Indianapolis, IN 46204. Correspondence should be identified in the following manner: "COMMENT RE: LSA Document #17-552, Hospital Assessment Fee Proposed 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.

Pursuant to IC 4-22-2-24(d), copies of the proposed rule and any data, studies, or analyses referenced in a justification of requirements or costs on regulated entities are available to be inspected and copied 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, 100 North Senate Avenue, Room N201, Indianapolis, Indiana and are open for public inspection and copying.