Subject: Annual Hospice Rates Effective October 1, 2008

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INDIANA HEALTH COVERAGE PROGRAMS P R O V I D E R B U L L E T I N B T 2 0 0 8 4 0 N O V E M B E R 7, 2 0 0 8 To: All IHCP-enrolled Hospice Providers Subject: Annual Hospice s Effective October 1, 2008 Overview Each year on October 1, the Centers for Medicare & Medicaid Services (CMS) releases new hospice rates to state Medicaid agencies for Medicaid-enrolled hospice providers. This bulletin provides the following information for Indiana Health Coverage Programs (IHCP) hospice rates effective October 1, 2008, through September 30, 2009: A brief explanation of the method of calculation used by Myers and Stauffer, LC, the IHCP long-term care contractor, about the new IHCP hospice rates. A brief summary of how EDS, the IHCP fiscal agent, updated IndianaAIM to reflect the new hospice rates and the mass adjustment activity for previously paid claims. A table listing the new IHCP hospice rates effective October 1, 2008, 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 Medicare program. Therefore, the IHCP hospice rates, based on Medicare reimbursement rates and methodology, are adjusted to disregard offsets resulting from Medicare premium amounts. The rates are adjusted in wages using listings from the CMS. The total per diem amounts reimbursed to IHCP-enrolled providers are calculated according to IHCP hospice members levels of care (LOC). Hospice providers are reimbursed at one of the hospice LOCs. A member s hospice LOC is covered in one of the following situations: home hospice LOC in the private home IHCP hospice per diem only home hospice LOC in the nursing home IHCP hospice per diem plus room and board per diem EDS Page 1 of 5 Indianapolis, IN 46207-7263 For more information visit http://www.indianamedicaid.com

home hospice LOC in the private home IHCP hospice per diem only home hospice LOC in the nursing home IHCP hospice per diem plus room and board per diem respite care for private home members or nursing facility members IHCP hospice per diem only. There is no additional room and board per diem for this service. inpatient care for private home 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 that the hospice per diem for routine and continuous home hospice LOC is paid using the wage index listing of the city or county where the member resides. The BBA of 1997 specified that when a hospice bills for inpatient hospice care, the hospice rate continues to be paid using the wage index listing of the city or county where the hospice is located. IndianaAIM pays IHCP hospice claims consistent with the BBA of 1997. The new hospice rates were loaded in IndianaAIM on October 31, 2008, and are listed in Table 2, beginning on the next page. Payment of Hospice Claims The unweighted amounts for the hospice rates are noted in Table 1 for hospice agencies whose software requires that information. Table 1 Unweighted Amounts for Hospice s Level of Unweighted Amount $ 43.85 $255.72 $ 69.91 $224.10 A mass adjustment will be performed the week of November 24, 2008, on claims with dates of service October 1, 2008, through October 31, 2008. If you have questions, contact EDS Customer Assistance at (317) 655-3240 in the Indianapolis area or toll free at 1-800-577-1278. EDS Page 2 of 5

Medicaid Hospice s Effective October 1, 2008 Table 2 Hospice -Adjusted s Effective October 1, 2008, Name Anderson Madison 48 0.9266 133.08 776.04 32.34 146.35 593.41 Bloomington Greene 28 0.9358 133.97 781.21 32.55 147.11 597.07 Monroe 53 0.9358 133.97 781.21 32.55 147.11 597.07 Owen 60 0.9358 133.97 781.21 32.55 147.11 597.07 Cincinnati Dearborn 15 1.0270 142.75 832.42 34.68 154.64 633.42 Ohio 58 1.0270 142.75 832.42 34.68 154.64 633.42 Franklin 24 1.0270 142.75 832.42 34.68 154.64 633.42 Columbus Bartholomew 3 1.0011 140.26 817.88 34.08 152.50 623.10 Elkhart-Goshen Elkhart 20 1.0089 141.01 822.26 34.26 153.14 626.21 Evansville Gibson 26 0.9092 131.41 766.27 31.93 144.92 586.47 Posey 65 0.9092 131.41 766.27 31.93 144.92 586.47 Vanderburgh 82 0.9092 131.41 766.27 31.93 144.92 586.47 Warrick 87 0.9092 131.41 766.27 31.93 144.92 586.47 Fort Wayne Allen 2 0.9745 137.69 802.94 33.46 150.31 612.50 Wells 90 0.9745 137.69 802.94 33.46 150.31 612.50 Whitley 92 0.9745 137.69 802.94 33.46 150.31 612.50 Gary Lake 45 0.9682 137.09 799.40 33.31 149.79 609.99 Jasper 37 0.9682 137.09 799.40 33.31 149.79 609.99 Newton 56 0.9682 137.09 799.40 33.31 149.79 609.99 Porter 64 0.9682 137.09 799.40 33.31 149.79 609.99 Indianapolis Boone 6 1.0333 143.36 835.96 34.83 155.16 635.93 Brown 7 1.0333 143.36 835.96 34.83 155.16 635.93 Hamilton 29 1.0333 143.36 835.96 34.83 155.16 635.93 Hancock 30 1.0333 143.36 835.96 34.83 155.16 635.93 Hendricks 32 1.0333 143.36 835.96 34.83 155.16 635.93 Johnson 41 1.0333 143.36 835.96 34.83 155.16 635.93 Marion 49 1.0333 143.36 835.96 34.83 155.16 635.93 Morgan 55 1.0333 143.36 835.96 34.83 155.16 635.93 EDS Page 3 of 5

Name, Putnam 67 1.0333 143.36 835.96 34.83 155.16 635.93 Shelby 73 1.0333 143.36 835.96 34.83 155.16 635.93 Kokomo Howard 34 1.0068 140.80 821.08 34.21 152.97 625.37 Tipton 80 1.0068 140.80 821.08 34.21 152.97 625.37 Lafayette Benton 4 0.9310 133.51 778.51 32.44 146.72 595.16 Carroll 8 0.9310 133.51 778.51 32.44 146.72 595.16 Tippecanoe 79 0.9310 133.51 778.51 32.44 146.72 595.16 Louisville Clark 10 0.9515 135.48 790.03 32.92 148.41 603.33 Floyd 22 0.9515 135.48 790.03 32.92 148.41 603.33 Harrison 31 0.9515 135.48 790.03 32.92 148.41 603.33 Washington 88 0.9515 135.48 790.03 32.92 148.41 603.33 Michigan City/La Porte La Porte 46 0.9357 133.96 781.15 32.55 147.11 597.03 Muncie Delaware 18 0.8622 126.88 739.88 30.83 141.04 567.74 South Bend St. Joseph 71 1.0095 141.06 822.59 34.27 153.19 626.45 Terre Haute Clay 11 0.9243 132.86 774.75 32.28 146.16 592.49 Sullivan 77 0.9243 132.86 774.75 32.28 146.16 592.49 Vermillion 83 0.9243 132.86 774.75 32.28 146.16 592.49 Vigo 84 0.9243 132.86 774.75 32.28 146.16 592.49 Nonurban Areas Adams 1 0.9002 130.54 761.22 31.72 144.18 582.88 Blackford 5 0.9002 130.54 761.22 31.72 144.18 582.88 Cass 9 0.9002 130.54 761.22 31.72 144.18 582.88 Clinton 12 0.9002 130.54 761.22 31.72 144.18 582.88 Crawford 13 0.9002 130.54 761.22 31.72 144.18 582.88 Daviess 14 0.9002 130.54 761.22 31.72 144.18 582.88 De Kalb 17 0.9002 130.54 761.22 31.72 144.18 582.88 Decatur 16 0.9002 130.54 761.22 31.72 144.18 582.88 Dubois 19 0.9002 130.54 761.22 31.72 144.18 582.88 Fayette 21 0.9002 130.54 761.22 31.72 144.18 582.88 Fountain 23 0.9002 130.54 761.22 31.72 144.18 582.88 Fulton 25 0.9002 130.54 761.22 31.72 144.18 582.88 EDS Page 4 of 5

Name, Grant 27 0.9002 130.54 761.22 31.72 144.18 582.88 Henry 33 0.9002 130.54 761.22 31.72 144.18 582.88 Huntington 35 0.9002 130.54 761.22 31.72 144.18 582.88 Jackson 36 0.9002 130.54 761.22 31.72 144.18 582.88 Jay 38 0.9002 130.54 761.22 31.72 144.18 582.88 Jefferson 39 0.9002 130.54 761.22 31.72 144.18 582.88 Jennings 40 0.9002 130.54 761.22 31.72 144.18 582.88 Knox 42 0.9002 130.54 761.22 31.72 144.18 582.88 Kosciusko 43 0.9002 130.54 761.22 31.72 144.18 582.88 Lagrange 44 0.9002 130.54 761.22 31.72 144.18 582.88 Lawrence 47 0.9002 130.54 761.22 31.72 144.18 582.88 Marshall 50 0.9002 130.54 761.22 31.72 144.18 582.88 Martin 51 0.9002 130.54 761.22 31.72 144.18 582.88 Miami 52 0.9002 130.54 761.22 31.72 144.18 582.88 Montgomery 54 0.9002 130.54 761.22 31.72 144.18 582.88 Noble 57 0.9002 130.54 761.22 31.72 144.18 582.88 Orange 59 0.9002 130.54 761.22 31.72 144.18 582.88 Parke 61 0.9002 130.54 761.22 31.72 144.18 582.88 Perry 62 0.9002 130.54 761.22 31.72 144.18 582.88 Pike 63 0.9002 130.54 761.22 31.72 144.18 582.88 Pulaski 66 0.9002 130.54 761.22 31.72 144.18 582.88 Randolph 68 0.9002 130.54 761.22 31.72 144.18 582.88 Ripley 69 0.9002 130.54 761.22 31.72 144.18 582.88 Rush 70 0.9002 130.54 761.22 31.72 144.18 582.88 Scott 72 0.9002 130.54 761.22 31.72 144.18 582.88 Spencer 74 0.9002 130.54 761.22 31.72 144.18 582.88 Starke 75 0.9002 130.54 761.22 31.72 144.18 582.88 Steuben 76 0.9002 130.54 761.22 31.72 144.18 582.88 Switzerland 78 0.9002 130.54 761.22 31.72 144.18 582.88 Union 81 0.9002 130.54 761.22 31.72 144.18 582.88 Wabash 85 0.9002 130.54 761.22 31.72 144.18 582.88 Warren 86 0.9002 130.54 761.22 31.72 144.18 582.88 Wayne 89 0.9002 130.54 761.22 31.72 144.18 582.88 White 91 0.9002 130.54 761.22 31.72 144.18 582.88 EDS Page 5 of 5