Makes Certain technical corrections to the home health service limitation language to become fully consistent with Medicaid statutory regulatory requirements.

Decreases amount of resources that a spouse of an institutionalized individual can retain known as the Community Spouse Protected Amount (CSPA).

Eliminates the coverage of legend vitamins and mineral products, except prenatal vitamins and fluoride, which will continue to be covered for Medicaid eligible recipients.

Limits reimbursement for eyeglasses to no more than one pair per client during two year period.

Revises the inpatient hospital payment method for determining payments.

Prevent the substitution of a generic equivalent drug when the net cost to the state for the brand name drug, after rebates, is less than the cost of the generic equivalent.

Revises the payment methodology for services provided by Nursing Facilities, Intermediate Care Facility for the Medically retarded and Psychiatric Residential Treatment Facilities.

Implements a recipient lock-in program for those that over-utilize Medicaid services.

Eliminate the focussed risk management program.

Revises the payment methodology for Intermediate Care Facility for the Mentally Retarded.