MedicaidReimbursementMedium impact
BT2024178: IHCP announces rate changes for certain providers effective Jan. 1, 2025
Indiana Medicaid (IHCP)·IN · PM&R (Physical Medicine & Rehab), Psychiatry, Nephrology +2 more·Claims & Billing
Effective date
Jan 1, 2025
We identified it
Jun 19, 2026
Summary
Indiana Health Coverage Programs (IHCP) is implementing new reimbursement rate factors for rehabilitation hospitals, LTAC hospitals, out-of-state acute care and psychiatric hospitals, ASCs, rehabilitation facilities, outpatient mental health clinics, and ESRD clinics effective January 1, 2025. These changes affect both fee-for-service and managed care programs under IHCP as part of the HIP Rate Equalization Project.
Action Required
Before January 1, 2025: Billing team must update fee schedules in billing system with new IHCP rate factors - rehabilitation hospitals (1.800x), LTAC hospitals ($1,675.43 per diem), out-of-state acute care hospitals (1.284x for DRG, 0.958x for burn LOC, 1.067x for psychiatric LOC), ASCs (1.123x), rehabilitation facilities (1.075x), outpatient mental health clinics (1.088x), and ESRD clinics (1.010x). Update contract management system to reflect these rates for Indiana Medicaid patients. Contact FSSA.IHCPReimbursement@fssa.in.gov with questions.