IN HB1327

Extends the hospital assessment fee program beyond its June 30, 2013 expiration date by establishing a new permanent chapter (IC 16-21-10) authorizing the Office of Medicaid Policy and Planning to assess fees on hospitals

Creates a four-member Hospital Assessment Fee Committee, including the Secretary of Family and Social Services, budget director, and two governor-appointed hospital representatives, to review and approve Medicaid state plan amendments and waivers

Requires 71.5% of collected hospital assessment fees to be distributed to hospitals for Medicaid services, with 28.5% used by the office for general Medicaid expenses

Extends the health facility quality assessment fee on nursing facilities indefinitely by repealing the June 30, 2014 expiration date, with approximately 70.6% of funds directed to Medicaid nursing facility services after state fiscal year 2013

Allocates the entire federal Medicaid disproportionate share allotment to acute care hospitals rather than mental health institutions, while providing a separate $2 million annual distribution to eligible private psychiatric institutions