The purpose and effect of the proposed rule is to incorporate changes to the Florida Title XIX Inpatient Hospital Reimbursement Plan effective January 1, 2010. The 2009-10 General Appropriations Act, Senate Bill 2600, Specific Appropriation 188, authorized a $35,478,571 inpatient hospital rate reduction, based upon the calculation of the unit cost. If the unit cost was equal to or less than the unit cost used in establishing the budget, no rate reduction would be necessary. After calculating the unit cost for the July 1, 2009 inpatient hospital rates, it was determined that no rate reduction was necessary for the July 1, 2009 rate semester. For the January 1, 2010, rate semester, the unit cost was recalculated and it was determined that a rate reduction would be necessary. Effective January 1, 2010, the Agency shall implement a recurring methodology in the Title XIX Inpatient Hospital Reimbursement Plan to achieve a $9,635,295 rate reduction. In establishing rates through the normal process, prior to including this reduction, if the unit cost is equal to or less than the unit cost used in establishing the budget, then no additional reduction in rates is necessary. In establishing rates through the normal process, prior to including this reduction, if the unit cost is greater than the unit cost used in establishing the budget, then rates shall be reduced by an amount required to achieve this reduction, but shall not be reduced below the unit cost used in establishing the budget.