Indiana Code Title 16. Health § 16-21-10-11

Sec. 11. (a) This section:

(b) Subject to subsections (d) and (e), the state share dollars used to fund disproportionate share payments to acute care hospitals licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b) shall be paid with money collected through the fee and the hospital care for the indigent dollars described in section 10 of this chapter.

(c) Subject to subsections (d) and (e), the federal Medicaid disproportionate share allotments for the state fiscal years beginning July 1, 2013, and each state fiscal year thereafter shall be allocated in their entirety to acute care hospitals licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b).  No part of the federal disproportionate share allotments applicable for disproportionate share payments for the state fiscal year beginning July 1, 2013, and each state fiscal year thereafter may be allocated to institutions for mental disease or other mental health facilities, as defined by applicable federal law.

(d) Subsections (b) and (c) do not apply for any state fiscal year for which the state directed payment program established under section 8.5 of this chapter is in effect.

(e) For any state fiscal year for which the state directed payment program established under section 8.5 of this chapter is in effect, the state share of the disproportionate share payments described in STEP ONE of IC 12-15-16-7.3(c) shall be funded by the fee.