(A) As used in this section:

1. (1) "CPI" means the consumer price index for all urban consumers as published by the United States bureau of labor statistics.
2. (2) "CPI medical inflation rate" means the inflation rate for medical care, or the successor term for medical care, for the midwest region as specified in the CPI.

3. (3) "JMOC projected medical inflation rate" means the following:

   1. (a) The projected medical inflation rate for a fiscal biennium determined by the actuary with which the joint medicaid oversight committee contracts under section 103.414 of the Revised Code if the committee agrees with the actuary's projected medical inflation rate for that fiscal biennium;
   2. (b) The different projected medical inflation rate for a fiscal biennium determined by the joint medicaid oversight committee under section 103.414 of the Revised Code if the committee disagrees with the projected medical inflation rate determined for that fiscal biennium by the actuary with which the committee contracts under that section.
4. (4) "Successor term" means a term that the United States bureau of labor statistics uses in place of another term in revisions to the CPI.

(B) The medicaid director shall implement reforms to the medicaid program that do all of the following:

1. (1) Limit the growth in the per recipient per month cost of the medicaid program, as determined on an aggregate basis for all eligibility groups, for a fiscal biennium to not more than the lesser of the following:

   1. (a) The average annual increase in the CPI medical inflation rate for the most recent three-year period for which the necessary data is available as of the first day of the fiscal biennium, weighted by the most recent year of the three years;
   2. (b) The JMOC projected medical inflation rate for the fiscal biennium.

2. (2) Achieve the limit in the growth of the per recipient per month cost of the medicaid program under division (B)(1) of this section by doing all of the following:

   1. (a) Improving the physical and mental health of medicaid recipients;
   2. (b) Providing for medicaid recipients to receive medicaid services in the most cost-effective and sustainable manner;
   3. (c) Removing barriers that impede medicaid recipients' ability to transfer to lower cost, and more appropriate, medicaid services, including home and community-based services;
   4. (d) Establishing medicaid payment rates that encourage value over volume and result in medicaid services being provided in the most efficient and effective manner possible;
   5. (e) Implementing fraud and abuse prevention and cost avoidance mechanisms to the fullest extent possible;
   6. (f) Integrating in the care management system established under section 5167.03 of the Revised Code the delivery of physical health, behavioral health, nursing facility, and home and community-based services covered by medicaid.
3. (3) Reduce the prevalence of comorbid health conditions among, and the mortality rates of, medicaid recipients;
4. (4) Reduce infant mortality rates among medicaid recipients.