Updates the fee schedule for home health professional services, durable medical equipment, prosthetics, orthodtics and supplies and includes telemonitoring as a telehealth service.

Changes the definition of children, including lawfully present immigrants under the State Plan in include individuals who are 19 and 20 years of age whose family income is up to 150 percent.

To continue to provide coverage of children in the State's Medicaid program for 12 months if they would have lost Medicaid eligibility due the elimination of income disregards under the Modified Adjusted Gross Income methodologies which are effective January 1, 2014.

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

Updates the targeted case management state plan to include eligible services provided to children with a serious emotional disturbance (as defined in Federal, Register; volume 58, no. 96, published May 20; 1993, pgs. 29422 through 2942) who are between the ages of four (4) and twenty one (21) and who are being served by the Care Management Entity (CME) or by the Children' s Mental Health Waiver.

Reduces the income limits, eliminates buy-in premiums and revises the eligibility criteria for the Medicaid Purchase Plan Program which provides coverage to workers with disabilities.

Updates the fee schedule for hearing aids and audiometric evaluations.

Terminates the Disability Medicaid Program due to budget constraints and repeals associated provisions of the State's May 2008 rule.

Modification of the Upper Payment Limit gap calculation for outpatient hospital services.

Implement a prospective payment methodology for outpatient hospital services.