MedicaidReimbursementHigh impact
BT202149: IHCP to end 3 percent reduction in reimbursement for hospital services
Indiana Medicaid (IHCP)·IN·Claims & Billing
Effective date
Jul 1, 2021
We identified it
Jun 19, 2026
Summary
Indiana Medicaid (IHCP) is eliminating the 3% reduction in reimbursement for inpatient and outpatient hospital services effective July 1, 2021. This means hospital claims will receive full reimbursement rates without the reduction that has been in place since 2014.
Action Required
Effective July 1, 2021: Billing team should verify that Indiana Medicaid hospital claims are processing at full reimbursement rates without the 3% reduction. Monitor claim payments to ensure the reduction has been removed from system calculations. Update any internal fee schedules or payment expectations for Indiana Medicaid hospital services.