MedicaidReimbursementMedium impact
BT202389: IHCP revises Hospital Assessment Fee adjustment factor for outpatient and inpatient rates
Indiana Medicaid (IHCP)·IN · PM&R (Physical Medicine & Rehab)·Provider Bulletin
Effective date
Aug 1, 2023
We identified it
Jun 19, 2026
Summary
The Indiana Health Coverage Programs (IHCP) revised the Hospital Assessment Fee adjustment factor for inpatient rehabilitation level-of-care rate from 2.6 to 3.2, effective August 1, 2023. This change affects reimbursement for eligible hospitals under fee-for-service and managed care delivery systems including HIP, Hoosier Care Connect, and Hoosier Healthwise programs.
Action Required
Immediately: Hospital billing teams in Indiana must update their reimbursement calculations to reflect the new HAF adjustment factor of 3.2 for inpatient rehabilitation level-of-care claims with discharge dates on or after August 1, 2023. Verify billing systems apply correct adjustment factors and monitor future IHCP bulletins for additional factor revisions.