A legislative committee will soon begin seeing if there’s a way for Chicago-area hospitals that treat Region children to be paid the same rates as Indiana facilities.
The Indiana Legislative Council on Tuesday assigned a group of lawmakers to look at the potential of creating parity between Medicaid reimbursement paid to Indiana children’s hospitals versus that paid to out-of-state facilities.
“Hoosier parents with children in need of specialized care want to go to the closest hospital that provides the best treatment available,” said Rep. Edmond Soliday, R-Valparaiso, in a statement. “Sometimes, those hospitals are located across our state’s border. In Northwest Indiana, we are fortunate to have the nearby University of Chicago Medical Center accepting Hoosier Medicaid patients.”
“However, at the rate we are currently reimbursing out-of-state facilities that may not always be the case,” Soliday said. “To ensure Hoosier children continue receiving the life-saving care they need, we must study the best approach for reimbursing medical centers across the state line.”
The Family and Social Services Administration has different levels of reimbursement rates for services for hospitals in Indiana and those out of state, according to a letter from Region lawmakers, and that some facilities that provide a high-level of neonatal care have indicated they might not be able to continue accepting Medicaid-covered children at the current rates.
“This loss of access to geographically close, highly specialized and advanced care will limit treatment options for Hoosier children who suffer from rare, life-threatening afflictions that require urgent and immediate treatment,” the lawmakers wrote. “This is especially true for Northwest Indiana as the closest hospital providing Level IV neonatal care in Indiana is located in Indianapolis while there are hospitals providing Level IV neonatal care much closer in Chicago.”
The committee will study Medicaid reimbursement rates to children’s hospitals in neighboring states, potentially equalizing the rates for services with what’s paid to Riley Children’s Hospital in Indianapolis.
When the bill was first proposed during the legislative session, it would have created a pilot program with a Chicago children’s hospital. That language was stripped from the bill.
The Lake County Council, during its April meeting, agreed to send a letter to legislators asking them to support the bill.
Councilman Charlie Brown, D-Gary, and a retired legislator, said the Medicaid reimbursement in Chicago is at a higher rate than Indiana. Brown said the Legislature appeared to send the issue to a study committee, but he thinks it should at least start the pilot program.
“This issue has been going on for years,” Brown said, during the council’s April meeting. “I think this is super important for all the babies and parents in Northwest Indiana.”