§ 12-15-20-2 — Establishment of fund; payments from fund; priority

The Medicaid indigent care trust fund is
established to pay the non-federal share of the following:
(1) Enhanced disproportionate share payments to providers under
IC 12-15-19-1.
(2) Subject to subdivision (8), disproportionate share payments to
providers under IC 12-15-19-2.1.
(3) Medicaid payments for pregnant women described in IC 12-15-2-13 and infants and children described in IC 12-15-2-14.
(4) Municipal disproportionate share payments to providers under
IC 12-15-19-8.
(5) Payments to hospitals under IC 12-15-15-9.
(6) Payments to hospitals under IC 12-15-15-9.5.
(7) Payments, funding, and transfers as otherwise provided in
clauses (8)(D), (8)(F), and (8)(G).
(8) Of the intergovernmental transfers deposited into the
Medicaid indigent care trust fund, the following apply:
(A) The entirety of the intergovernmental transfers deposited
into the Medicaid indigent care trust fund for state fiscal years
ending on or before June 30, 2000, shall be used to fund the
state's share of the disproportionate share payments to providers
under IC 12-15-19-2.1.
(B) Of the intergovernmental transfers deposited into the
Medicaid indigent care trust fund for the state fiscal year ending
June 30, 2001, an amount equal to one hundred percent (100%)
of the total intergovernmental transfers deposited into the
Medicaid indigent care trust fund for the state fiscal year
beginning July 1, 1998, and ending June 30, 1999, shall be used
to fund the state's share of disproportionate share payments to
providers under IC 12-15-19-2.1. The remainder of the
intergovernmental transfers, if any, for the state fiscal year shall
be used to fund the state's share of additional Medicaid
payments to hospitals licensed under IC 16-21 pursuant to a
methodology adopted by the office.
(C) Of the intergovernmental transfers deposited into the
Medicaid indigent care trust fund, for state fiscal years
beginning July 1, 2001, and July 1, 2002, an amount equal to:
(i) one hundred percent (100%) of the total intergovernmental
transfers deposited into the Medicaid indigent care trust fund
for the state fiscal year beginning July 1, 1998; minus
(ii) an amount equal to the amount deposited into the
Medicaid indigent care trust fund under IC 12-15-15-9(d) for
the state fiscal years beginning July 1, 2001, and July 1,
2002;
shall be used to fund the state's share of disproportionate share
payments to providers under IC 12-15-19-2.1. The remainder
of the intergovernmental transfers, if any, must be used to fund
the state's share of additional Medicaid payments to hospitals
licensed under IC 16-21 pursuant to a methodology adopted by
the office.
(D) The intergovernmental transfers, which shall include
amounts transferred under IC 12-16-7.5-4.5, deposited into the
Medicaid indigent care trust fund and the certifications of
public expenditures deemed to be made to the medicaid
indigent care trust fund, for the state fiscal years ending after
June 30, 2005, but before July 1, 2007, shall be used, in
descending order of priority, as follows:
(i) As provided in clause (B) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (B) of STEP THREE of IC 12-16-7.5-4.5(b)(2), to fund the amount to be transferred to
the office.
(ii) As provided in clause (C) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (C) of STEP THREE of IC 12-16-7.5-4.5(b)(2), to fund the non-federal share of the
payments made under IC 12-15-15-9 and IC 12-15-15-9.5.
(iii) To fund the non-federal share of the payments made
under IC 12-15-15-1.1, IC 12-15-15-1.3, and IC 12-15-19-8.
(iv) As provided under clause (A) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (A) of STEP THREE of IC 12-16-7.5-4.5(b)(2), for the payment to be made under clause
(A) of STEP FIVE of IC 12-15-15-1.5(b).
(v) As provided under STEP FOUR of IC 12-16-7.5-4.5(b)(1)
and STEP FOUR of IC 12-16-7.5-4.5(b)(2), to fund the
payments to be made under clause (B) of STEP FIVE of IC 12-15-15-1.5(b).
(vi) To fund, in an order of priority determined by the office
to best use the available non-federal share, the programs
listed in clause (H).
(E) For state fiscal years ending after June 30, 2007, the total
amount of intergovernmental transfers used to fund the
non-federal share of payments to hospitals under IC 12-15-15-9
and IC 12-15-15-9.5 shall not exceed the amount provided in
clause (G)(ii).
(F) As provided in clause (D), for the following:
(i) Each state fiscal year ending after June 30, 2003, but
before July 1, 2005, an amount equal to the amount
calculated under STEP THREE of the following formula shall
be transferred to the office:
STEP ONE: Calculate the product of thirty-five million dollars
($35,000,000) multiplied by the federal medical assistance
percentage for federal fiscal year 2003.
STEP TWO: Calculate the sum of the amounts, if any,
reasonably estimated by the office to be transferred or
otherwise made available to the office for the state fiscal year,
and the amounts, if any, actually transferred or otherwise made
available to the office for the state fiscal year, under
arrangements whereby the office and a hospital licensed under
IC 16-21-2 agree that an amount transferred or otherwise made
available to the office by the hospital or on behalf of the
hospital shall be included in the calculation under this STEP.
STEP THREE: Calculate the amount by which the product
calculated under STEP ONE exceeds the sum calculated under
STEP TWO.
(ii) The state fiscal years ending after June 30, 2005, but
before July 1, 2007, an amount equal to thirty million dollars
($30,000,000) shall be transferred to the office.
(G) Subject to IC 12-15-20.7-2(b), for each state fiscal year
ending after June 30, 2007, the total amount in the Medicaid
indigent care trust fund, including the amount of
intergovernmental transfers of funds transferred, and the
amounts of certifications of expenditures eligible for federal
financial participation deemed to be transferred, to the
Medicaid indigent care trust fund, shall be used to fund the
following:
(i) Thirty million dollars ($30,000,000) transferred to the
office for the Medicaid budget.
(ii) An amount not to exceed the non-federal share of
payments to hospitals under IC 12-15-15-9 and IC 12-15-15-9.5.
(iii) An amount not to exceed the non-federal share of
payments to hospitals made under IC 12-15-15-1.1 and IC 12-15-15-1.3.
(iv) An amount not to exceed the non-federal share of
disproportionate share payments to hospitals under IC 12-15-19-8.
(v) An amount not to exceed the non-federal share of
payments to hospitals under clause (A) of STEP FIVE of IC 12-15-15-1.5(c).
(vi) An amount not to exceed the non-federal share of
Medicaid safety-net payments.
(vii) An amount not to exceed the non-federal share of
payments to hospitals made under clauses (C) or (D) of STEP
FIVE of IC 12-15-15-1.5(c).
(viii) An amount not to exceed the non-federal share of
payments to hospitals made under clause (F) of STEP FIVE
of IC 12-15-15-1.5(c).
(ix) An amount not to exceed the non-federal share of
disproportionate share payments to hospitals under IC 12-15-19-2.1.
(x) If additional funds are available after making payments
under items (i) through (ix), to fund other Medicaid
supplemental payments for hospitals approved by the office
and included in the Medicaid state plan.
Items (ii) through (x) do not apply during the period that the
office is assessing a hospital fee authorized by IC 16-21-10.
(H) This clause does not apply during the period that the office
is assessing a hospital fee authorized by IC 16-21-10. For
purposes of clause (D)(vi), the office shall fund the following:
(i) An amount equal to the non-federal share of the payments
to the hospital that is eligible under this item, for payments
made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b)
under an agreement with the office, Medicaid safety-net
payments and any payment made under IC 12-15-19-2.1. The
amount of the payments to the hospital under this item shall
be equal to one hundred percent (100%) of the hospital's
hospital-specific limit for state fiscal year 2005, when the
payments are combined with payments made under IC 12-15-15-9, IC 12-15-15-9.5, and clause (B) of STEP FIVE
of IC 12-15-15-1.5(b) for a state fiscal year. A hospital is
eligible under this item if the hospital was eligible for
Medicaid disproportionate share hospital payments for the
state fiscal year ending June 30, 1998, the hospital received
a Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001, 2002, 2003, and
2004, and the hospital merged two (2) hospitals under a
single Medicaid provider number, effective January 1, 2004.
(ii) An amount equal to the non-federal share of payments to
hospitals that are eligible under this item, for payments made
under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under
an agreement with the office, Medicaid safety-net payments,
and any payment made under IC 12-15-19-2.1. The amount
of payments to each hospital under this item shall be equal to
one hundred percent (100%) of the hospital's
hospital-specific limit for state fiscal year 2004, when the
payments are combined with payments made to the hospital
under IC 12-15-15-9, IC 12-15-15-9.5, and clause (B) of
STEP FIVE of IC 12-15-15-1.5(b) for a state fiscal year. A
hospital is eligible under this item if the hospital did not
receive a payment under item (i), the hospital has less than
sixty thousand (60,000) Medicaid inpatient days annually, the
hospital either was eligible for Medicaid disproportionate
share hospital payments for the state fiscal year ending June
30, 1998, or the hospital met the office's Medicaid
disproportionate share payment criteria based on state fiscal
year 1998 data and received a Medicaid disproportionate
share payment for the state fiscal year ending June 30, 2001,
and the hospital received a Medicaid disproportionate share
payment under IC 12-15-19-2.1 for state fiscal years 2001,
2002, 2003, and 2004.
(iii) Subject to IC 12-15-19-6, an amount not less than the
non-federal share of Medicaid safety-net payments in
accordance with the Medicaid state plan.
(iv) An amount not less than the non-federal share of
payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under an agreement with the office to a
hospital having sixty thousand (60,000) Medicaid inpatient
days annually.
(v) An amount not less than the non-federal share of
Medicaid disproportionate share payments for hospitals
eligible under this item, and made under IC 12-15-19-6 and
the approved Medicaid state plan. A hospital is eligible for a
payment under this item if the hospital is eligible for
payments under IC 12-15-19-2.1.
(vi) If additional funds remain after the payments made under
(i) through (v), payments approved by the office and under
the Medicaid state plan, to fund the non-federal share of other
Medicaid supplemental payments for hospitals.
[Pre-1992 Revision Citation: 12-1-7-61(a).]

Legislative History

As added by P.L.2-1992, SEC.9. Amended by P.L.27-1992, SEC.23; P.L.24-1997, SEC.50; P.L.126-1998, SEC.15; P.L.273-1999, SEC.174; P.L.113-2000, SEC.19; P.L.283-2001, SEC.26; P.L.1-2002, SEC.53; P.L.120-2002, SEC.17; P.L.255-2003, SEC.22; P.L.212-2007, SEC.10; P.L.218-2007, SEC.20; P.L.229-2011, SEC.140; P.L.205-2013, SEC.203.