Suspends the annual inflation factor applied to inpatient hospital and nursing facility (including intermediate care facility for individuals with intellectual disabilities) rates for the state fiscalyear ending June 30, 2013.

Provides for disproportionate share hospital payments for the State fiscal year ending September 30, 2012.

Removes the 20 mile radius restriction for telernedicine services provided by Federally Qualified Health Centers (FQHCs), Rural Health Centers (RHCs), Community MentalHealth Centers (CMHCs) and critical access hospitals. Provides reimbursement for telehealth services to horne health agencies.

Amends Idaho's current 1915(i) state plan benefit for children with developmental disabilities by adding "Early Intervention Provider" as a provider type. In addition, this SPA revises the quality improvement strategy language in order to align it with current state plan home and community-based services strategies.

Update eligibility criteria by adding child and adolescent Needs and Strengths assessment to eligibility criteria for Targeted Case Management services.

Extends The State's reimbursement methodology for setting payment rates for inpatient hospital services at the current level past the original end date of June 30 2013 to a revised end date of June 30 2017.

Approves Eligibility Standards for State's Medicaid Mandatory and Optional Eligibility Groups.

Affirms State Residency Regulations and Addreses Interstate Agreements and Temporary Absence.

Inclusion of Adult Group 1902(a)( IO)(A)(i)(VIII)(42 CFR 435.119) under Managed Care.

Removal of the optional coverage of benzodiazepines, barbiturates and smoking cessation medications from theexcludable drug category.