MedicaidReimbursementMedium impact
BT202584: IHCP announces HAF adjustment factors for outpatient and inpatient rates
Indiana Medicaid (IHCP)·IN·Provider Bulletin
Effective date
Jul 1, 2025
We identified it
Jun 18, 2026
Summary
Indiana Medicaid (IHCP) is increasing the Hospital Assessment Fee (HAF) adjustment factor for inpatient DRG reimbursement from 3.5 to 3.7 effective July 1, 2025. Outpatient HAF adjustment factors remain unchanged at 3.9. This affects all IHCP programs including HIP, Hoosier Care Connect, Hoosier Healthwise, and PathWays.
Action Required
By July 1, 2025: Billing team must verify that billing system is updated to apply the new HAF adjustment factor of 3.7 to inpatient DRG claims for Indiana Medicaid patients. Confirm that claims with discharge dates on or after July 1, 2025 receive the correct reimbursement adjustment. Monitor initial payments to ensure proper application of new rates.