IHS Provides Decision on the Fiscal Year (FY) 2018 Indian Health Care Improvement Fund (IHCIF) Formula
On August 17, IHS sent a DTLL outlining decisions on the fiscal year (FY) 2018 Indian Health Care Improvement Fund (IHCIF) formula. This formula will be used to allocate the $72M in IHCF funding for FY2018.
On June 8, 2018, IHS initiated a Tribal Consultation on the recommendations made by the IHCIF Workgroup. Based on the comments received during the Tribal Consultation period, IHS accepted two of the workgroup recommendations and modified the third recommendation:
- IHS approved changing the benchmark from the Federal Employee Health Benefits Program to the National Health Expenditure (NHE) with an emphasis on Categories 1-4. The IHCIF Workgroup indicated this change was needed to more accurately reflect currently authorized programs, both funded and unfunded.
- IHS also approved the IHCIF Workgroup’s recommendation to revise the standard user population factor (user count) from regionally unduplicated users to nationally unduplicated users, and adding non-Purchased/Referred Care Delivery Area users (formerly known as non-Contract Health Service Delivery Area users) to the national unduplicated user population. This change provides a more accurate user population. This change will also include American Indian or Alaska Native individuals who were previously not counted, due to living outside a Purchased/Referred Care Delivery Area.
- The IHCIF Workgroup also recommended changing the 25 percent estimate used for alternate resources to a site-specific coverage value (percent) based on IHS site-level coverage data, adjusted for program weighting, coverage gaps, payment gaps, and program component enrollments. However, IHS has decided that for FY 2018 only, using statewide averages for sites for the alternate resource calculation will improve the accuracy of the current formula calculation and acknowledge the impact of Medicaid differences.
IHS stated that there will be a Phase II working group beginning in late August 2018 to address the concerns of FY2019.