As you probably know, HB1120 was passed and signed into law last year. This bill included a passthrough mandate that requires 70% of Medicaid reimbursement rates to be allocated to caregiver wages. 

What is included in that 70% has not yet been determined by FSSA and will be crucial to the bill’s ultimate impact on home care providers in Indiana.

The Indiana Association for Home & Hospice Care (IAHHC), HCAOA, and industry partners worked diligently this session to find a legislative avenue to repeal and address the impact of this proposed passthrough. Despite strong support from key lawmakers to include this language in the budget, it was ultimately not adopted in the final version of the budget. We have now turned our attention to FSSA and the executive branch to urge them to adopt language that will minimize the impact on providers.

Below and in italics is definitional language proposed by IAHHC that we believe will make the passthrough mandate much less onerous.  

HCAOA would love your thoughts regarding this language and asks that you fill out this Voter Voice message urging FSSA and Governor Braun’s administration to use this language in its implementation plans. 

HCAOA will keep you updated on FSSA’s implementation plans.

“Attendant Care providers shall use not less than 70 percent of their hourly reimbursement rate for compensation for their direct care, front-line and medical and clinical staff, which may include, but shall not be limited to, all employee-related expenses, hourly rate increases, wraparound benefits, shift differentials, overtime, hiring and retention bonuses or recruitment as defined by the secretary. Employee-related expenses shall include but are not limited to mileage, administrative and overhead costs (office functions), training costs, and any supervision requirements for the attendant care providers.
Structured Family Care providers shall use not less than 60 percent of received funds for CAREGIVER STIPENDS AND FOR direct care, front-line and medical and clinical staff, which may include, but shall not be limited to, hourly rate increases, wraparound benefits, shift differentials, overtime, hiring and retention bonuses or recruitment, as defined by the secretary. Caregiver coach and nurse supervision expenses of the caregiver, including transportation expenses, shall be included in the 60 percent calculation, as well as any required respite care costs.”