IN HB1493

Establishes Medicaid reimbursement for assisted living services in home and community based services programs for aged and disabled individuals, effective July 1, 2017.

Requires the division to report to the general assembly by October 1, 2017, a plan to expand home and community based services including evaluation of current services, eligibility assessment streamlining, reimbursement rate adequacy, and migration options from aged and disabled Medicaid waivers.

Implements drug testing requirements for home health agency employees with direct patient contact, including pre-employment testing, random testing of at least 50% of non-licensed employees annually, and mandatory discharge or six-month suspension for positive results without valid prescription.

Mandates use of RUG-IV, 48-Group model for nursing facility payment and requires the office to provide one year public notice before reducing health facility service reimbursement, including fiscal impact disclosure.

Prohibits inclusion of certain Medicare-eligible Medicaid recipients receiving nursing facility services in risk-based or capitated managed care programs through December 31, 2019, and requires reporting on Medicaid recipient eligibility criteria for health facility services.