Indiana Medicaid Nursing Facility Rate Cuts to be Partially Restored

The Office of Medicaid Policy and Planning (OMPP) published notice on May 29, 2013 that it will reduce the existing nursing facility rate cut from 5% to 3% on January 1, 2014. The notice can be accessed in the Members Only section of the IHCA website. Once implemented, the reduction in the rate cut will be in effect at least until June 30, 2015.  This partial restoration of the rate cut is a direct result of the intense lobbying effort that IHCA led during the 2013 session of the Indiana General Assembly where IHCA staff and lobbyists contacted key legislative leaders and personnel within Governor Pence’s administration.

The reduction of the rate cut results in approximately $68M being restored to the Indiana Medicaid nursing facility rate.  Prior to the announcement of the partial rate restoration, the estimated impact of a 5% cut for State Fiscal Years 2014 and 2015 was $160M in Federal and State funds.  The reduction of the rate cut to 3% will result in an estimated impact of $92M in Federal and State funds during the same period, a restoration of approximately $68M.

More details will be forthcoming from OMPP on exactly which components of the rate will be impacted by the cut, but the general, and positive, financial impact noted above is welcomed good news.  Please contact Zach Cattell at zcattell@ihca.org or 317-616-9001 with any questions.