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January 7, 2009
Proposed Rule to Change Indiana Nursing Home Reimbursements
On December 11, 2008, the Indiana Family and Social Services Administration proposed changes to Medicaid to help the state avoid a budget shortfall. Effective July 1, 2009, the changes, if fully implemented, are expected to save $155 million by June 30, 2010. The Indiana Medicaid program serves about one million low-income or disabled people. The proposal includes nursing home rate increases and decreases linked to performance, a prescription drug purchasing program to gain greater discounts from manufacturers, and a five percent rate cut to providers. The changes were proposed in an emergency administrative rule published January 7, 2009, which can go into effect without legislative approval.

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