IHCP bulletin INDIANA HEALTH COVERAGE PROGRAMS BT OCTOBER 12, 2010

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IHCP bulletin INDIANA HEALTH COVERAGE PROGRAMS BT201041 OCTOBER 12, 2010 Annual hospice rates effective October 1, 2010 Each year on October 1, the Centers for Medi & Medicaid Services (CMS) releases new hospice rates to State Medicaid agencies for Medicaid-enrolled hospice providers. This bulletin provides the following information for the Indiana Health Coverage Programs (IHCP) hospice rates that are effective October 1, 2010, through September 30, 2011: A brief explanation of the method of calculation used by Myers and Stauffer, LC, the IHCP long-term contractor, about the new IHCP hospice rates. A list of the new IHCP hospice rates, effective October 1, 2010, as prepared by Myers and Stauffer. Method of calculation Reimbursement for the IHCP hospice benefit follows the methodology and level established by the CMS for the administration of the federal Medi program. Therefore, the IHCP hospice rates, based on Medi reimbursement rates and methodology, are adjusted to disregard offsets resulting from Medi premium amounts. The rates are adjusted in wages using listings from the CMS. The total per diem amounts reimbursed to an IHCP-enrolled provider are calculated according to the IHCP hospice member s location of. Hospice providers are reimbursed at one of the hospice levels of (LOC). The bullets below show how a member s hospice LOC is covered in one of the following situations: Hospice level of coverage hospice LOC in the private IHCP hospice per diem only hospice LOC in the nursing IHCP hospice per diem plus room and board per diem Continue

hospice LOC in the private IHCP hospice per diem only hospice LOC in the nursing IHCP hospice per diem plus room and board per diem for the private members or nursing facility members IHCP hospice per diem only. There is no additional room and board per diem for this service. for the private members or nursing facility members IHCP hospice per diem only. There is no additional room and board per diem for this service. Hospice providers are reminded that the Balanced Budget Act (BBA) of 1997 changed the reimbursement methodology so the hospice per diem for routine and continuous hospice LOC is paid using the wage- listing of the city or county where the member resides. The BBA of 1997 did specify that when a hospice bills for hospice that the hospice rate would continue to be paid using the wage listing of the city or county where the hospice is located. IndianaAIM pays IHCP hospice claims consistent with the BBA of 1997. Payment of hospice claims The Medicaid hospice payment rates for and services provided from October 1, 2010, through September 30, 2011, are as follows: Table 1 Medicaid hospice payment rates for and services Description Daily Rate Wage Component Subject to Index Unweighted Amount $146.82 $100.88 $45.94 $856.12 full rate = 24. of /$35.67 $588.24 $267.88 $159.65 $86.42 $73.23 $652.27 $417.52 $234.75 The Daily Rate is the sum of the Wage Component Subject to Index and the Unweighted Amount. The Wage Component Subject to Index is the labor portion of the Daily Rate. The Unweighted Amount is the nonlabor portion of the Daily Rate. The Hospice Wage Adjusted Rates are computed by multiplying the Wage Component Subject to Index by the wage for the applicable geographic area and adding the result to the Unweighted Amount.

Medicaid hospice rates effective October 1, 2010 Hospice Wage-Adjusted Rates Effective October 1, 2010 name Anderson: Madison 48 0.9463 141.40 824.53 34.36 155.01 629.85 Bloomington: Greene 28 0.9454 141.31 824.00 34.33 154.93 629.47 Monroe 53 0.9454 141.31 824.00 34.33 154.93 629.47 Owen 60 0.9454 141.31 824.00 34.33 154.93 629.47 Cincinnati: Dearborn 15 0.9914 145.95 851.06 35.46 158.91 648.68 Ohio 58 0.9914 145.95 851.06 35.46 158.91 648.68 Franklin 24 0.9914 145.95 851.06 35.46 158.91 648.68 Columbus: Bartholomew 3 0.9969 146.51 854.30 35.60 159.38 650.98 Elkhart-Goshen: Elkhart 20 0.9920 146.01 851.41 35.48 158.96 648.93 Evansville: Gibson 26 0.8909 135.81 791.94 33.00 150.22 606.72 Posey 65 0.8909 135.81 791.94 33.00 150.22 606.72 Vanderburgh 82 0.8909 135.81 791.94 33.00 150.22 606.72 Warrick 87 0.8909 135.81 791.94 33.00 150.22 606.72 Fort Wayne: Allen 2 0.9421 140.98 822.06 34.25 154.65 628.10 Wells 90 0.9421 140.98 822.06 34.25 154.65 628.10 Whitley 92 0.9421 140.98 822.06 34.25 154.65 628.10 Gary: Lake 45 0.9710 143.89 839.06 34.96 157.14 640.16 Jasper 37 0.9710 143.89 839.06 34.96 157.14 640.16 Newton 56 0.9710 143.89 839.06 34.96 157.14 640.16 Porter 64 0.9710 143.89 839.06 34.96 157.14 640.16 Indianapolis: Boone 6 1.0185 148.69 867.00 36.13 161.25 659.99 Brown 7 1.0185 148.69 867.00 36.13 161.25 659.99

name Hamilton 29 1.0185 148.69 867.00 36.13 161.25 659.99 Hancock 30 1.0185 148.69 867.00 36.13 161.25 659.99 Hendricks 32 1.0185 148.69 867.00 36.13 161.25 659.99 Johnson 41 1.0185 148.69 867.00 36.13 161.25 659.99 Marion 49 1.0185 148.69 867.00 36.13 161.25 659.99 Morgan 55 1.0185 148.69 867.00 36.13 161.25 659.99 Putnam 67 1.0185 148.69 867.00 36.13 161.25 659.99 Shelby 73 1.0185 148.69 867.00 36.13 161.25 659.99 Kokomo: Howard 34 1.0310 149.95 874.36 36.43 162.33 665.21 Tipton 80 1.0310 149.95 874.36 36.43 162.33 665.21 Lafayette: Benton 4 0.9598 142.76 832.47 34.69 156.18 635.49 Carroll 8 0.9598 142.76 832.47 34.69 156.18 635.49 Tippecanoe 79 0.9598 142.76 832.47 34.69 156.18 635.49 Louisville: Clark 10 0.9371 140.47 819.12 34.13 154.21 626.01 Floyd 22 0.9371 140.47 819.12 34.13 154.21 626.01 Harrison 31 0.9371 140.47 819.12 34.13 154.21 626.01 Washington 88 0.9371 140.47 819.12 34.13 154.21 626.01 Michigan City/ LaPorte: La Porte 46 0.9734 144.14 840.47 35.02 157.35 641.16 Muncie: Delaware 18 0.8767 134.38 783.59 32.65 148.99 600.79 South Bend: St. Joseph 71 1.0130 148.13 863.77 35.99 160.77 657.70 Terre Haute: Clay 11 0.9473 141.50 825.12 34.38 155.10 630.27 Sullivan 77 0.9473 141.50 825.12 34.38 155.10 630.27 Vermillion 83 0.9473 141.50 825.12 34.38 155.10 630.27 Vigo 84 0.9473 141.50 825.12 34.38 155.10 630.27

name Nonurban Areas: Adams 1 0.8916 135.88 792.35 33.01 150.28 607.01 Blackford 5 0.8916 135.88 792.35 33.01 150.28 607.01 Cass 9 0.8916 135.88 792.35 33.01 150.28 607.01 Clinton 12 0.8916 135.88 792.35 33.01 150.28 607.01 Crawford 13 0.8916 135.88 792.35 33.01 150.28 607.01 Daviess 14 0.8916 135.88 792.35 33.01 150.28 607.01 De Kalb 17 0.8916 135.88 792.35 33.01 150.28 607.01 Decatur 16 0.8916 135.88 792.35 33.01 150.28 607.01 Dubois 19 0.8916 135.88 792.35 33.01 150.28 607.01 Fayette 21 0.8916 135.88 792.35 33.01 150.28 607.01 Fountain 23 0.8916 135.88 792.35 33.01 150.28 607.01 Fulton 25 0.8916 135.88 792.35 33.01 150.28 607.01 Grant 27 0.8916 135.88 792.35 33.01 150.28 607.01 Henry 33 0.8916 135.88 792.35 33.01 150.28 607.01 Huntington 35 0.8916 135.88 792.35 33.01 150.28 607.01 Jackson 36 0.8916 135.88 792.35 33.01 150.28 607.01 Jay 38 0.8916 135.88 792.35 33.01 150.28 607.01 Jefferson 39 0.8916 135.88 792.35 33.01 150.28 607.01 Jennings 40 0.8916 135.88 792.35 33.01 150.28 607.01 Knox 42 0.8916 135.88 792.35 33.01 150.28 607.01 Kosciusko 43 0.8916 135.88 792.35 33.01 150.28 607.01 Lagrange 44 0.8916 135.88 792.35 33.01 150.28 607.01 Lawrence 47 0.8916 135.88 792.35 33.01 150.28 607.01 Marshall 50 0.8916 135.88 792.35 33.01 150.28 607.01 Martin 51 0.8916 135.88 792.35 33.01 150.28 607.01 Miami 52 0.8916 135.88 792.35 33.01 150.28 607.01 Montgomery 54 0.8916 135.88 792.35 33.01 150.28 607.01 Noble 57 0.8916 135.88 792.35 33.01 150.28 607.01 Orange 59 0.8916 135.88 792.35 33.01 150.28 607.01 Parke 61 0.8916 135.88 792.35 33.01 150.28 607.01 Perry 62 0.8916 135.88 792.35 33.01 150.28 607.01 Pike 63 0.8916 135.88 792.35 33.01 150.28 607.01 Pulaski 66 0.8916 135.88 792.35 33.01 150.28 607.01 Randolph 68 0.8916 135.88 792.35 33.01 150.28 607.01 Ripley 69 0.8916 135.88 792.35 33.01 150.28 607.01 Rush 70 0.8916 135.88 792.35 33.01 150.28 607.01 Scott 72 0.8916 135.88 792.35 33.01 150.28 607.01 Spencer 74 0.8916 135.88 792.35 33.01 150.28 607.01 Starke 75 0.8916 135.88 792.35 33.01 150.28 607.01 Steuben 76 0.8916 135.88 792.35 33.01 150.28 607.01 Switzerland 78 0.8916 135.88 792.35 33.01 150.28 607.01 Union 81 0.8916 135.88 792.35 33.01 150.28 607.01 Wabash 85 0.8916 135.88 792.35 33.01 150.28 607.01

name Warren 86 0.8916 135.88 792.35 33.01 150.28 607.01 Wayne 89 0.8916 135.88 792.35 33.01 150.28 607.01 White 91 0.8916 135.88 792.35 33.01 150.28 607.01 1 The Hospice Wage Index was published in the Federal Register July 22, 2010. States adjust the wage component of the daily hospice payment rates to reflect local geographical differences in the wage levels. Questions? If you have questions about this bulletin, please contact Customer Assistance at (317) 655-3240 in the Indianapolis local area or toll-free at 1-800-577-1278. Copies of this bulletin If you need additional copies of this bulletin, please download them from the IHCP Web site. To receive e-mail notifications of future IHCP publications, subscribe to the IHCP E-mail Notifications.