1. (a) This section does not apply during the period that the office is assessing a hospital fee authorized by IC 16-21-10 . The office is not required to make disproportionate share payments under this chapter from the Medicaid indigent care trust fund established by IC 12-15-20-1 until the fund has received sufficient deposits, including intergovernmental transfers of funds and certifications of expenditures, to permit the office to make the state's share of the required disproportionate share payments.

2. (b) For state fiscal years beginning after June 30, 2006, if:

   1. (1) sufficient deposits have not been received; or

   2. (2) the statewide Medicaid disproportionate share allocation is insufficient to provide federal financial participation for the entirety of all eligible disproportionate share hospitals' hospital-specific limits;

      the office shall reduce disproportionate share payments made under IC 12-15-19-2.1 and Medicaid safety-net payments made in accordance with the Medicaid state plan to eligible institutions using an equitable methodology consistent with subsection (c).

3. (c) For state fiscal years beginning after June 30, 2006, payments reduced under this section shall, in accordance with the Medicaid state plan, be made:

   1. (1) to best utilize federal matching funds available for hospitals eligible for Medicaid disproportionate share payments under IC 12-15-19-2.1 ; and

   2. (2) by utilizing a methodology that allocates available funding under this subdivision, and Medicaid supplemental payments as defined in IC 12-15-15-1.5 , in a manner that all hospitals eligible for Medicaid disproportionate share payments under IC 12-15-19-2.1 receive payments using a methodology that:

      1. (A) takes into account the situation of the eligible hospitals that have historically qualified for Medicaid disproportionate share payments; and
      2. (B) ensures that payments for eligible hospitals are equitable.

4. (d) The percentage reduction shall be sufficient to ensure that payments do not exceed the statewide Medicaid disproportionate share allocation or the amounts that can be financed with:

   1. (1) the amount transferred from the hospital care for the indigent trust fund;
   2. (2) other intergovernmental transfers;
   3. (3) certifications of public expenditures; or

   4. (4) any other permissible sources of non-federal match.

      [Pre-1992 Revision Citation: 12-1-7-17.8(e).]

As added by P.L.2-1992, SEC.9. Amended by P.L.27-1992, SEC.22; P.L.113-2000, SEC.14; P.L.212-2007, SEC.9; P.L.218-2007, SEC.19; P.L.229-2011, SEC.137; P.L.205-2013, SEC.200.