| 1 | + | *EH1024.2* |
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| 2 | + | March 28, 2025 |
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| 3 | + | ENGROSSED |
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| 4 | + | HOUSE BILL No. 1024 |
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| 5 | + | _____ |
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| 6 | + | DIGEST OF HB 1024 (Updated March 27, 2025 10:21 am - DI 120) |
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| 7 | + | Citations Affected: IC 12-15. |
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| 8 | + | Synopsis: Medicaid reimbursement for children's hospitals. Extends |
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| 9 | + | the expiration date of language specifying Medicaid reimbursement for |
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| 10 | + | certain out-of-state children's hospitals from July 1, 2025, to July 1, |
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| 11 | + | 2027. |
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| 12 | + | Effective: Upon passage. |
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| 13 | + | Slager, Porter, Jackson C |
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| 14 | + | (SENATE SPONSORS — NIEMEYER, BOHA CEK, CHARBONNEAU, |
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| 15 | + | BECKER, JACKSON L, LEISING) |
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| 16 | + | January 8, 2025, read first time and referred to Committee on Public Health. |
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| 17 | + | January 27, 2025, reported — Do Pass. Referred to Committee on Ways and Means |
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| 18 | + | pursuant to Rule 126.3. |
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| 19 | + | February 6, 2025, reported — Do Pass. |
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| 20 | + | February 10, 2025, read second time, ordered engrossed. |
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| 21 | + | February 11, 2025, engrossed. |
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| 22 | + | February 13, 2025, read third time, passed. Yeas 92, nays 0. |
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| 23 | + | SENATE ACTION |
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| 24 | + | February 19, 2025, read first time and referred to Committee on Health and Provider |
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| 25 | + | Services. |
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| 26 | + | March 13, 2025, reported favorably — Do Pass; reassigned to Committee on |
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| 27 | + | Appropriations. |
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| 28 | + | March 27, 2025, amended, reported favorably — Do Pass. |
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| 29 | + | EH 1024—LS 6385/DI 104 March 28, 2025 |
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14 | | - | SECTION 1. IC 12-15-15-1.2, AS AMENDED BY P.L.76-2023, |
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15 | | - | SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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16 | | - | UPON PASSAGE]: Sec. 1.2. (a) As used in this section, "children's |
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17 | | - | hospital" means: |
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18 | | - | (1) a freestanding general acute care hospital that: |
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19 | | - | (A) is designated by the Medicare program as a children's |
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20 | | - | hospital; or |
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21 | | - | (B) furnishes inpatient and outpatient health care services to |
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22 | | - | patients who are predominantly individuals less than nineteen |
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23 | | - | (19) years of age; or |
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24 | | - | (2) a facility located within a freestanding general acute care |
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25 | | - | hospital that: |
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26 | | - | (A) is designated by the Medicare program as a children's |
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27 | | - | hospital; or |
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28 | | - | (B) furnishes inpatient and outpatient health care services to |
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29 | | - | patients who are predominately individuals less than nineteen |
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30 | | - | (19) years of age. |
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31 | | - | (b) This section applies to reimbursement for inpatient Medicaid |
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32 | | - | services and outpatient Medicaid services provided to a Medicaid |
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33 | | - | recipient who is less than nineteen (19) years of age at a children's |
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34 | | - | hospital that is located in a state bordering Indiana. This section does |
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35 | | - | not apply to reimbursement for non-emergency medical transportation. |
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36 | | - | HEA 1024 — Concur 2 |
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37 | | - | (c) As used in this subsection, "cost outlier case" means a Medicaid |
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38 | | - | stay that exceeds a predetermined threshold, defined as the greater of |
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39 | | - | twice the diagnosis-related group (DRG) rate or a fixed dollar amount |
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40 | | - | that has been established by the office. The office shall reimburse a |
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41 | | - | children's hospital for covered services provided to a Medicaid |
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42 | | - | recipient that is described in subsection (b) at a rate set by the secretary |
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43 | | - | that is based on a reimbursement formula that is: |
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44 | | - | (1) comparable to the current federal Medicare reimbursement |
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45 | | - | rate for the service provided by the children's hospital; or |
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46 | | - | (2) one hundred thirty percent (130%) of the Medicaid |
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47 | | - | reimbursement rate for a service that does not have a Medicare |
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48 | | - | reimbursement rate. |
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49 | | - | The reimbursement methodology under this subsection must factor in |
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50 | | - | any cost outlier case in a manner that results in the final reimbursement |
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51 | | - | rate made to a hospital meeting the reimbursement requirements |
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52 | | - | specified in this subsection. The office may, upon factoring in the cost |
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53 | | - | outlier case in determining the final reimbursement rate, make |
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54 | | - | retroactive reimbursements to an out of state children's hospital to the |
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55 | | - | date of the initial Medicaid waiver application. |
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56 | | - | (d) Before September 1, 2021, the office shall apply to the United |
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57 | | - | States Department of Health and Human Services for any state plan |
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58 | | - | amendment or Medicaid waiver necessary to implement and administer |
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59 | | - | this section. Before June 1, 2022, the office shall apply for an |
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60 | | - | amendment to the Medicaid waiver concerning reimbursement under |
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61 | | - | this section that is necessary to implement the changes required by |
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62 | | - | amendments made to this section concerning factoring in any cost |
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63 | | - | outlier case. |
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64 | | - | (e) The office may adopt rules under IC 4-22-2 necessary for the |
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65 | | - | implementation of this section. |
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66 | | - | (f) This section expires July 1, 2025. 2027. |
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67 | | - | SECTION 2. An emergency is declared for this act. |
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68 | | - | HEA 1024 — Concur Speaker of the House of Representatives |
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69 | | - | President of the Senate |
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70 | | - | President Pro Tempore |
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71 | | - | Governor of the State of Indiana |
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72 | | - | Date: Time: |
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73 | | - | HEA 1024 — Concur |
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| 45 | + | 1 SECTION 1. IC 12-15-15-1.2, AS AMENDED BY P.L.76-2023, |
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| 46 | + | 2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 47 | + | 3 UPON PASSAGE]: Sec. 1.2. (a) As used in this section, "children's |
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| 48 | + | 4 hospital" means: |
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| 49 | + | 5 (1) a freestanding general acute care hospital that: |
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| 50 | + | 6 (A) is designated by the Medicare program as a children's |
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| 51 | + | 7 hospital; or |
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| 52 | + | 8 (B) furnishes inpatient and outpatient health care services to |
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| 53 | + | 9 patients who are predominantly individuals less than nineteen |
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| 54 | + | 10 (19) years of age; or |
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| 55 | + | 11 (2) a facility located within a freestanding general acute care |
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| 56 | + | 12 hospital that: |
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| 57 | + | 13 (A) is designated by the Medicare program as a children's |
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| 58 | + | 14 hospital; or |
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| 59 | + | 15 (B) furnishes inpatient and outpatient health care services to |
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| 60 | + | 16 patients who are predominately individuals less than nineteen |
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| 61 | + | 17 (19) years of age. |
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| 62 | + | EH 1024—LS 6385/DI 104 2 |
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| 63 | + | 1 (b) This section applies to reimbursement for inpatient Medicaid |
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| 64 | + | 2 services and outpatient Medicaid services provided to a Medicaid |
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| 65 | + | 3 recipient who is less than nineteen (19) years of age at a children's |
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| 66 | + | 4 hospital that is located in a state bordering Indiana. This section does |
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| 67 | + | 5 not apply to reimbursement for non-emergency medical transportation. |
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| 68 | + | 6 (c) As used in this subsection, "cost outlier case" means a Medicaid |
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| 69 | + | 7 stay that exceeds a predetermined threshold, defined as the greater of |
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| 70 | + | 8 twice the diagnosis-related group (DRG) rate or a fixed dollar amount |
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| 71 | + | 9 that has been established by the office. The office shall reimburse a |
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| 72 | + | 10 children's hospital for covered services provided to a Medicaid |
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| 73 | + | 11 recipient that is described in subsection (b) at a rate set by the secretary |
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| 74 | + | 12 that is based on a reimbursement formula that is: |
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| 75 | + | 13 (1) comparable to the current federal Medicare reimbursement |
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| 76 | + | 14 rate for the service provided by the children's hospital; or |
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| 77 | + | 15 (2) one hundred thirty percent (130%) of the Medicaid |
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| 78 | + | 16 reimbursement rate for a service that does not have a Medicare |
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| 79 | + | 17 reimbursement rate. |
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| 80 | + | 18 The reimbursement methodology under this subsection must factor in |
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| 81 | + | 19 any cost outlier case in a manner that results in the final reimbursement |
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| 82 | + | 20 rate made to a hospital meeting the reimbursement requirements |
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| 83 | + | 21 specified in this subsection. The office may, upon factoring in the cost |
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| 84 | + | 22 outlier case in determining the final reimbursement rate, make |
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| 85 | + | 23 retroactive reimbursements to an out of state children's hospital to the |
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| 86 | + | 24 date of the initial Medicaid waiver application. |
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| 87 | + | 25 (d) Before September 1, 2021, the office shall apply to the United |
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| 88 | + | 26 States Department of Health and Human Services for any state plan |
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| 89 | + | 27 amendment or Medicaid waiver necessary to implement and administer |
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| 90 | + | 28 this section. Before June 1, 2022, the office shall apply for an |
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| 91 | + | 29 amendment to the Medicaid waiver concerning reimbursement under |
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| 92 | + | 30 this section that is necessary to implement the changes required by |
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| 93 | + | 31 amendments made to this section concerning factoring in any cost |
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| 94 | + | 32 outlier case. |
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| 95 | + | 33 (e) The office may adopt rules under IC 4-22-2 necessary for the |
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| 96 | + | 34 implementation of this section. |
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| 97 | + | 35 (f) This section expires July 1, 2025. 2027. |
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| 98 | + | 36 SECTION 2. An emergency is declared for this act. |
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| 99 | + | EH 1024—LS 6385/DI 104 3 |
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| 100 | + | COMMITTEE REPORT |
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| 101 | + | Mr. Speaker: Your Committee on Public Health, to which was |
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| 102 | + | referred House Bill 1024, has had the same under consideration and |
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| 103 | + | begs leave to report the same back to the House with the |
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| 104 | + | recommendation that said bill do pass. |
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| 105 | + | (Reference is to HB 1024 as introduced.) |
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| 106 | + | BARRETT |
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| 107 | + | Committee Vote: Yeas 11, Nays 0 |
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| 108 | + | _____ |
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| 109 | + | COMMITTEE REPORT |
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| 110 | + | Mr. Speaker: Your Committee on Ways and Means, to which was |
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| 111 | + | referred House Bill 1024, has had the same under consideration and |
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| 112 | + | begs leave to report the same back to the House with the |
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| 113 | + | recommendation that said bill do pass. |
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| 114 | + | (Reference is to HB 1024 as printed January 27, 2025.) |
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| 115 | + | THOMPSON |
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| 116 | + | Committee Vote: Yeas 21, Nays 0 |
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| 117 | + | _____ |
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| 118 | + | COMMITTEE REPORT |
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| 119 | + | Mr. President: The Senate Committee on Health and Provider |
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| 120 | + | Services, to which was referred House Bill No. 1024, has had the same |
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| 121 | + | under consideration and begs leave to report the same back to the |
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| 122 | + | Senate with the recommendation that said bill DO PASS and be |
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| 123 | + | reassigned to the Senate Committee on Appropriations. |
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| 124 | + | (Reference is to HB 1024 as printed February 6, 2025.) |
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| 125 | + | CHARBONNEAU, Chairperson |
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| 126 | + | Committee Vote: Yeas 12, Nays 0 |
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| 127 | + | EH 1024—LS 6385/DI 104 4 |
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| 128 | + | COMMITTEE REPORT |
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| 129 | + | Mr. President: The Senate Committee on Appropriations, to which |
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| 130 | + | was referred Engrossed House Bill No. 1024, has had the same under |
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| 131 | + | consideration and begs leave to report the same back to the Senate with |
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| 132 | + | the recommendation that said bill be AMENDED as follows: |
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| 133 | + | Page 2, line 35, reset in roman "(f) This section expires July 1,". |
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| 134 | + | Page 2, line 35, after "2025." insert "2027.". |
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| 135 | + | and when so amended that said bill do pass. |
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| 136 | + | (Reference is to EHB 1024 as printed March 14, 2025.) |
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| 137 | + | MISHLER, Chairperson |
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| 138 | + | Committee Vote: Yeas 8, Nays 2. |
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| 139 | + | EH 1024—LS 6385/DI 104 |
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