(1) The Montana Medicaid Program establishes provider reimbursement rates for medically necessary, covered services based on the estimated demand for services and the legislative appropriation and federal matching funds. Provider reimbursement rates are stated in fee schedules for covered services applicable to the identified Medicaid program. New rates are established by revising the identified program's fee schedule and adopting the new fees as of the stated effective date of the schedule. Copies of the department's current fee schedules are posted at http://medicaidprovider.mt.gov and may be obtained from the Department of Public Health and Human Services, Health Resources Division, 1401 East Lockey, P.O. Box 202951, Helena, MT 59620-2951. A description of the method for setting the reimbursement rate and the administrative rules applicable to the covered service are published in the chapter or subchapter of this title regarding that service. The department will make quarterly updates as necessary to the fee schedule noted in this rule to include new procedure codes and applicable rates and removal of terminated procedure codes.

(2) The department adopts and incorporates by reference, the resource-based relative value scale (RBRVS) reimbursement methodology for specific providers as described in ARM 37.85.212 on the date stated.

(a) Resource-based relative value scale (RBRVS) means the version of the Medicare resource-based relative value scale contained in the Medicare Physician Fee Schedule adopted by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services and published at 81 Federal Register 220, page 80170 (November 15, 2016) effective January 1, 2017 which is adopted and incorporated by reference. Procedure codes created after January 1, 2018 will be reimbursed using the relative value units from the Medicare Physician Fee Schedule in place at the time the procedure code is created.

(b) Fee schedules are effective January 1, 2018. The conversion factor for physician services is $36.53. The conversion factor for allied services is $24.29. The conversion factor for mental health services is $24.07. The conversion factor for anesthesia services is $28.87.

(c) Policy adjustors are effective July 1, 2016. The maternity policy adjustor is 112%. The family planning policy adjustor is 105%. The psychological testing for youth policy adjustor is 145%. The psychological testing policy adjustor applies only to psychologists.

(d) The payment-to-charge ratio is effective January 1, 2018 and is 45.59% of the provider's usual and customary charges.

(e) The specific percentages for modifiers adopted by the department are effective July 1, 2016.

(f) Psychiatrists receive a 112% provider rate of reimbursement adjustment to the reimbursement of physicians effective July 1, 2016.

(g) Midlevel practitioners receive a 90% provider rate of reimbursement adjustment to the reimbursement of physicians for those services described in ARM 37.86.205(5)(b) effective July 1, 2016.

(h) Optometric services receive a 112% provider rate of reimbursement adjustment to the reimbursement for allied services as provided in ARM 37.85.105(2) effective July 1, 2016.

(i) Reimbursement for physician-administered drugs described in ARM 37.86.105 is determined in 42 CFR 414.904 (2016). The department adopts 102.83% of the Average Sale Price (ASP), effective January 1, 2018.

(j) Reimbursement for vaccines described at ARM 37.86.105 is effective January 1, 2018.

(3) The department adopts and incorporates by reference, the fee schedule for the following programs within the Health Resources Division, on the date stated.

(a) The inpatient hospital services fee schedule and inpatient hospital base fee schedule rates including:

(i) the APR-DRG fee schedule for inpatient hospitals as provided in ARM 37.86.2907, effective March 1, 2018; and

(ii) the Montana Medicaid APR-DRG relative weight values, average national length of stay (ALOS), outlier thresholds, and APR grouper version 34 are contained in the APR-DRG Table of Weights and Thresholds effective March 1, 2018. The department adopts and incorporates by reference the APR-DRG Table of Weights and Thresholds effective March 1, 2018.

(b) The outpatient hospital services fee schedules including:

(i) the Outpatient Prospective Payment System (OPPS) fee schedule as published by the Centers for Medicare and Medicaid Services (CMS) in 82 Federal Register 217, effective January 1, 2018, and reviewed annually by CMS as required in 42 CFR 419.5 (2016) as updated by the department;

(ii) the conversion factor for outpatient services on or after March 1, 2018 is $49.46;

(iii) the Medicaid statewide average outpatient cost-to-charge ratio is 39.91%; and

(iv) the bundled composite rate of $244.47 for services provided in an outpatient maintenance dialysis clinic effective on or after January 1, 2018.

(c) The hearing aid services fee schedule, as provided in ARM 37.86.805, is effective March 1, 2018.

(d) The Relative Values for Dentists, as provided in ARM 37.86.1004, reference published in 2017 resulting in a dental conversion factor of $32.77 and fee schedule is effective March 1, 2018.

(e) The dental services covered procedures, the Dental and Denturist Program Provider Manual, as provided in ARM 37.86.1006, is effective March 1, 2018.

(f) The outpatient drugs reimbursement, dispensing fees range as provided in ARM 37.86.1105(3)(b) is effective January 1, 2018:

(i) for pharmacies with prescription volume between 0 and 39,999, the minimum is $3.41 and the maximum is $14.55;

(ii) for pharmacies with prescription volume between 40,000 and 69,999, the minimum is $3.41 and the maximum is $12.61; or

(iii) for pharmacies with prescription volume greater than 70,000, the minimum is $3.41 and the maximum is $10.67.

(g) The outpatient drugs reimbursement, compound drug dispensing fee range as provided in ARM 37.86.1105(5), will be $12.50, $17.50, or $22.50 based on the level of effort required by the pharmacist, effective July 1, 2013.

(h) The outpatient drugs reimbursement, vaccine administration fee as provided in ARM 37.86.1105(6), will be $20.68 for the first vaccine and $12.61 for each additional administered vaccine, effective January 1, 2018.

(i) The outpatient drugs reimbursement, unit dose prescriptions fee as provided in ARM 37.86.1105(10), will be $0.75 per pharmacy-packaged unit dose medication, effective November 1, 2013.

(j) The home infusion therapy services fee schedule, as provided in ARM 37.86.1506, is effective January 1, 2018.

(k) Montana Medicaid adopts and incorporates by reference the Region D Supplier Manual, effective January 1, 2018, which outlines the Medicare coverage criteria for Medicare covered durable medical equipment, local coverage determinations (LCDs), and national coverage determinations (NCDs) as provided in ARM 37.86.1802, effective January 1, 2018. The prosthetic devices, durable medical equipment, and medical supplies fee schedule, as provided in ARM 37.86.1807, is effective March 1, 2018.

(l) Fee schedules for private duty nursing, nutrition, children's special health services, and orientation and mobility specialists as provided in ARM 37.86.2207(2), are effective January 1, 2018.

(m) The transportation and per diem fee schedule, as provided in ARM 37.86.2405, is effective July 1, 2016.

(n) The specialized nonemergency medical transportation fee schedule, as provided in ARM 37.86.2505, is effective July 1, 2016.

(o) The ambulance services fee schedule, as provided in ARM 37.86.2605, is effective January 1, 2018.

(p) The audiology fee schedule, as provided in ARM 37.86.705, is effective January 1, 2018.

(q) The therapy fee schedules for occupational therapists, physical therapists, and speech therapists, as provided in ARM 37.86.610, are effective January 1, 2018.

(r) The optometric fee schedule provided in ARM 37.86.2005, is effective January 1, 2018.

(s) The chiropractic fee schedule, as provided in ARM 37.85.212(2), is effective January 1, 2018.

(t) The lab and imaging fee schedule, as provided in ARM 37.85.212(2) and 37.86.3007, is effective January 1, 2018.

(u) The Federally Qualified Health Center (FQHC) and Rural Health Clinic (RHC) fee schedule for add-on services, as provided in ARM 37.86.4412, is effective January 1, 2018.

(v) The Targeted Case Management for Children and Youth with Special Health Care Needs fee schedule, as provided in ARM 37.86.3910, is effective March 1, 2018.

(w) The Targeted Case Management for High Risk Pregnant Women fee schedule, as provided in ARM 37.86.3415, is effective January 1, 2018.

(x) The mobile imaging fee schedule, as provided in ARM 37.85.212, is effective January 1, 2018.

(y) The licensed direct entry midwife fee schedule, as provided in ARM 37.85.212, is effective January 1, 2018.

(4) The department adopts and incorporates by reference, the fee schedule for the following programs within the Senior and Long Term Care Division on the date stated:

(a) Home and community-based services for elderly and physically disabled persons fee schedule, as provided in ARM 37.40.1421, is effective January 1, 2018.

(b) Home health services fee schedule, as provided in ARM 37.40.705, is effective January 1, 2018.

(c) Personal assistance services fee schedule, as provided in ARM 37.40.1135, is effective January 1, 2018.

(d) Self-directed personal assistance services fee schedule, as provided in ARM 37.40.1135, is effective January 1, 2018.

(e) Community first choice services fee schedule, as provided in ARM 37.40.1026, is effective January 1, 2018.

(5) The department adopts and incorporates by reference, the fee schedule for the following programs within the Addictive and Mental Disorders Division on the date stated:

(a) Mental health center services for adults reimbursement, as provided in ARM 37.88.907, is effective January 1, 2018.

(b) Home and community-based services for adults with severe disabling mental illness, reimbursement, as provided in ARM 37.90.408, is effective January 1, 2018.

(c) Substance use disorder services reimbursement, as provided in ARM 37.27.905, is effective March 1, 2018.

(6) The department adopts and incorporates by reference, the fee schedule for the following program within the Developmental Services Division, on the date stated: Mental health services for youth, as provided in ARM 37.87.901 in the Medicaid Youth Mental Health Services Fee Schedule, is effective March 1, 2018.