In the latest session of the Indiana State Legislature, an important bill, the Hospital Assessment Fee (HAF) Redesign, was passed. This bill provides significant Medicaid relief for Indiana hospitals and improved access to care for Hoosiers. The bill allows the Indiana Family and Social Services Administrations to update the Hospital Assessment Fee to a State Directed Payment Program to maximize Medicaid reimbursement and protect access to care.
Now, these programs are in jeopardy in Congress as it considers the budget reconciliation bill. We must do everything we can to advocate for Indiana to be able to implement the HAF Redesign we just passed. Harmful policy changes or cuts to Medicaid could jeopardize access to care for those Hoosiers who need it most, including children, adults with disabilities, nursing home residents, and working families.
As Congress considers the budget reconciliation bill, we urge them to preserve the critical programs patients rely on, and that hospitals need to care for their communities.
We urge them to safeguard the flexibility states have in designing sustainable Medicaid funding strategies and firmly oppose any attempts to curtail the use of provider taxes. Protecting this flexibility is essential to maintaining access to care for patients, advancing quality reforms, and supporting hospitals across Indiana as they serve our communities.
For Methodist, protecting Medicaid reimbursement is especially critical. Methodist is a true safety net hospital in which 80% of its patients are covered by Medicaid/Medicare. Changes in Disproportionate Share Hospital (DSH) payment calculations at the federal level are having a significant negative impact. Methodist’s DSH cap went from $40 million to $13 million under these changes, a cut of $27 million dollars a year that the hospital cannot absorb, and which will only continue in the coming years.
We encourage all residents of Northwest Indiana to contact their legislators in the US House of Representatives and Senate to urge them to protect Medicaid and access to care for their families and neighbors.
