Applies a 33% disregard of the Federal Poverty Level to children age 6 and older, making the income 133% for this population.

Revises payment methodology for health care-acquired conditions (HCAC) and other Provider Preventable Conditions (OPPC).

Updates the optional state supplement standards for special income level groups consistent with the published 2013 federal poverty levels.

Modifies outpatient drugs for recipients with both Medicaid and Medicare coverage.

Decreases Durable Medical Equipment (SME) provider reimbursement from 80% to 72% for Orthotics and Prosthetics.

Implements Health Homes.

Increases Durable Medical Equipment (DME) provider reimbursement to 80% of Medicares allowed amount.

Establishs the provision of eyeglasses for adult beneficiaries.

Removes the waiver of services related to the treatment of a terminal illness required when a beneficiary under the age of 21 elects hospice services.

The plan amendment implements a payment improvement initiative which provides positive incentive adjustments in the form of gain sharing to reward providers who succeed in delivering higher, quality, patient-centered, and cost-effective care for designated episo9des of care and requires providers who do not meet the cost of care and or quality thresholds to make risk-sharing payments back to the Medicaid agency.