103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4117 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.07305 ILCS 5/14-13 Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Children and Family Services to pay for all inpatient stays at a hospital beginning on the 3rd day a child is in the hospital beyond medical necessity, and the parent or caregiver has denied the child access to the home and has refused or failed to make provisions for another living arrangement for the child or the child's discharge is being delayed due to a pending inquiry or investigation by the Department of Children and Family Services. In a provision requiring the Department of Children and Family Services to pay the DCFS per diem rate for inpatient psychiatric stays at a free-standing psychiatric hospital or a hospital with a pediatric or adolescent inpatient psychiatric unit, requires the Department to pay the DCFS per diem rate effective the 3rd day (rather than the 11th day) when a child is in the hospital beyond medical necessity. LRB103 33244 KTG 63053 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4117 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.07305 ILCS 5/14-13 305 ILCS 5/5-5.07 305 ILCS 5/14-13 Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Children and Family Services to pay for all inpatient stays at a hospital beginning on the 3rd day a child is in the hospital beyond medical necessity, and the parent or caregiver has denied the child access to the home and has refused or failed to make provisions for another living arrangement for the child or the child's discharge is being delayed due to a pending inquiry or investigation by the Department of Children and Family Services. In a provision requiring the Department of Children and Family Services to pay the DCFS per diem rate for inpatient psychiatric stays at a free-standing psychiatric hospital or a hospital with a pediatric or adolescent inpatient psychiatric unit, requires the Department to pay the DCFS per diem rate effective the 3rd day (rather than the 11th day) when a child is in the hospital beyond medical necessity. LRB103 33244 KTG 63053 b LRB103 33244 KTG 63053 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4117 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.07305 ILCS 5/14-13 305 ILCS 5/5-5.07 305 ILCS 5/14-13 305 ILCS 5/5-5.07 305 ILCS 5/14-13 Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Children and Family Services to pay for all inpatient stays at a hospital beginning on the 3rd day a child is in the hospital beyond medical necessity, and the parent or caregiver has denied the child access to the home and has refused or failed to make provisions for another living arrangement for the child or the child's discharge is being delayed due to a pending inquiry or investigation by the Department of Children and Family Services. In a provision requiring the Department of Children and Family Services to pay the DCFS per diem rate for inpatient psychiatric stays at a free-standing psychiatric hospital or a hospital with a pediatric or adolescent inpatient psychiatric unit, requires the Department to pay the DCFS per diem rate effective the 3rd day (rather than the 11th day) when a child is in the hospital beyond medical necessity. LRB103 33244 KTG 63053 b LRB103 33244 KTG 63053 b LRB103 33244 KTG 63053 b A BILL FOR HB4117LRB103 33244 KTG 63053 b HB4117 LRB103 33244 KTG 63053 b HB4117 LRB103 33244 KTG 63053 b 1 AN ACT concerning public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Aid Code is amended by 5 changing Sections 5-5.07 and 14-13 as follows: 6 (305 ILCS 5/5-5.07) 7 Sec. 5-5.07. Inpatient psychiatric stay; DCFS per diem 8 rate. The Department of Children and Family Services shall pay 9 the DCFS per diem rate for inpatient psychiatric stay at a 10 free-standing psychiatric hospital or a hospital with a 11 pediatric or adolescent inpatient psychiatric unit effective 12 the 3rd day 11th day when a child is in the hospital beyond 13 medical necessity, and the parent or caregiver has denied the 14 child access to the home and has refused or failed to make 15 provisions for another living arrangement for the child or the 16 child's discharge is being delayed due to a pending inquiry or 17 investigation by the Department of Children and Family 18 Services. If any portion of a hospital stay is reimbursed 19 under this Section, the hospital stay shall not be eligible 20 for payment under the provisions of Section 14-13 of this 21 Code. 22 (Source: Reenacted by P.A. 101-15, eff. 6-14-19; reenacted by 23 P.A. 101-209, eff. 8-5-19; P.A. 101-655, eff. 3-12-21; 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4117 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.07305 ILCS 5/14-13 305 ILCS 5/5-5.07 305 ILCS 5/14-13 305 ILCS 5/5-5.07 305 ILCS 5/14-13 Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Children and Family Services to pay for all inpatient stays at a hospital beginning on the 3rd day a child is in the hospital beyond medical necessity, and the parent or caregiver has denied the child access to the home and has refused or failed to make provisions for another living arrangement for the child or the child's discharge is being delayed due to a pending inquiry or investigation by the Department of Children and Family Services. In a provision requiring the Department of Children and Family Services to pay the DCFS per diem rate for inpatient psychiatric stays at a free-standing psychiatric hospital or a hospital with a pediatric or adolescent inpatient psychiatric unit, requires the Department to pay the DCFS per diem rate effective the 3rd day (rather than the 11th day) when a child is in the hospital beyond medical necessity. LRB103 33244 KTG 63053 b LRB103 33244 KTG 63053 b LRB103 33244 KTG 63053 b A BILL FOR 305 ILCS 5/5-5.07 305 ILCS 5/14-13 LRB103 33244 KTG 63053 b HB4117 LRB103 33244 KTG 63053 b HB4117- 2 -LRB103 33244 KTG 63053 b HB4117 - 2 - LRB103 33244 KTG 63053 b HB4117 - 2 - LRB103 33244 KTG 63053 b 1 102-201, eff. 7-30-21; 102-558, eff. 8-20-21; 102-1037, eff. 2 6-2-22.) 3 (305 ILCS 5/14-13) 4 Sec. 14-13. Reimbursement for inpatient stays extended 5 beyond medical necessity. 6 (a) By October 1, 2019, the Department shall by rule 7 implement a methodology effective for dates of service July 1, 8 2019 and later to reimburse hospitals for inpatient stays 9 extended beyond medical necessity due to the inability of the 10 Department or the managed care organization in which a 11 recipient is enrolled or the hospital discharge planner to 12 find an appropriate placement after discharge from the 13 hospital. The Department shall evaluate the effectiveness of 14 the current reimbursement rate for inpatient hospital stays 15 beyond medical necessity. 16 (b) The methodology shall provide reasonable compensation 17 for the services provided attributable to the days of the 18 extended stay for which the prevailing rate methodology 19 provides no reimbursement. The Department may use a day 20 outlier program to satisfy this requirement. The reimbursement 21 rate shall be set at a level so as not to act as an incentive 22 to avoid transfer to the appropriate level of care needed or 23 placement, after discharge. 24 (c) The Department shall require managed care 25 organizations to adopt this methodology or an alternative HB4117 - 2 - LRB103 33244 KTG 63053 b HB4117- 3 -LRB103 33244 KTG 63053 b HB4117 - 3 - LRB103 33244 KTG 63053 b HB4117 - 3 - LRB103 33244 KTG 63053 b 1 methodology that pays at least as much as the Department's 2 adopted methodology unless otherwise mutually agreed upon 3 contractual language is developed by the provider and the 4 managed care organization for a risk-based or innovative 5 payment methodology. 6 (d) Days beyond medical necessity shall not be eligible 7 for per diem add-on payments under the Medicaid High Volume 8 Adjustment (MHVA) or the Medicaid Percentage Adjustment (MPA) 9 programs. 10 (e) For services covered by the fee-for-service program, 11 reimbursement under this Section shall only be made for days 12 beyond medical necessity that occur after the hospital has 13 notified the Department of the need for post-discharge 14 placement. For services covered by a managed care 15 organization, hospitals shall notify the appropriate managed 16 care organization of an admission within 24 hours of 17 admission. For every 24-hour period beyond the initial 24 18 hours after admission that the hospital fails to notify the 19 managed care organization of the admission, reimbursement 20 under this subsection shall be reduced by one day. 21 (f) The Department of Children and Family Services shall 22 pay for all inpatient stays beginning on the 3rd day a child is 23 in the hospital beyond medical necessity, and the parent or 24 caregiver has denied the child access to the home and has 25 refused or failed to make provisions for another living 26 arrangement for the child or the child's discharge is being HB4117 - 3 - LRB103 33244 KTG 63053 b HB4117- 4 -LRB103 33244 KTG 63053 b HB4117 - 4 - LRB103 33244 KTG 63053 b HB4117 - 4 - LRB103 33244 KTG 63053 b 1 delayed due to a pending inquiry or investigation by the 2 Department of Children and Family Services. 3 (Source: P.A. 101-209, eff. 8-5-19; 102-4, eff. 4-27-21.) HB4117 - 4 - LRB103 33244 KTG 63053 b