Today the Family and Social Services Administration took the first round in a series of actions meant to respond to revenue shortfalls as a result of the recession and increases in Medicaid enrollment.   

 

"The reductions we are announcing today cut spending without cutting vital services," said Secretary Anne Murphy. "Our commitment is to the 1.2 million Hoosiers that receive benefits from us, and the cuts announced today will not take away from our clients receiving the benefits to which they are entitled." 

 

• FSSA Internal Administrative Cuts ($13.6 million) 

• Includes not filling vacancies and co-locating local Division of Disability and Rehabilitative offices.

 

• Medicaid Provider Rate Adjustments ($10.6 million) 

• Includes 5% Medicaid reimbursement reduction for hospitals.

 

• Contract Reductions ($9.8 million) 

• Includes Residential Community Assistance Program (RCAP) moratorium for new clients, elimination of Naturally Occurring Retirement Communities (NORC) contract, and lower negotiated rates with vendors.

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