Indiana 2025 Regular Session

Indiana House Bill HB1024 Compare Versions

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1+*EH1024.2*
2+March 28, 2025
3+ENGROSSED
4+HOUSE BILL No. 1024
5+_____
6+DIGEST OF HB 1024 (Updated March 27, 2025 10:21 am - DI 120)
7+Citations Affected: IC 12-15.
8+Synopsis: Medicaid reimbursement for children's hospitals. Extends
9+the expiration date of language specifying Medicaid reimbursement for
10+certain out-of-state children's hospitals from July 1, 2025, to July 1,
11+2027.
12+Effective: Upon passage.
13+Slager, Porter, Jackson C
14+(SENATE SPONSORS — NIEMEYER, BOHA CEK, CHARBONNEAU,
15+BECKER, JACKSON L, LEISING)
16+January 8, 2025, read first time and referred to Committee on Public Health.
17+January 27, 2025, reported — Do Pass. Referred to Committee on Ways and Means
18+pursuant to Rule 126.3.
19+February 6, 2025, reported — Do Pass.
20+February 10, 2025, read second time, ordered engrossed.
21+February 11, 2025, engrossed.
22+February 13, 2025, read third time, passed. Yeas 92, nays 0.
23+SENATE ACTION
24+February 19, 2025, read first time and referred to Committee on Health and Provider
25+Services.
26+March 13, 2025, reported favorably — Do Pass; reassigned to Committee on
27+Appropriations.
28+March 27, 2025, amended, reported favorably — Do Pass.
29+EH 1024—LS 6385/DI 104 March 28, 2025
130 First Regular Session of the 124th General Assembly (2025)
231 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
332 Constitution) is being amended, the text of the existing provision will appear in this style type,
433 additions will appear in this style type, and deletions will appear in this style type.
534 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
635 provision adopted), the text of the new provision will appear in this style type. Also, the
736 word NEW will appear in that style type in the introductory clause of each SECTION that adds
837 a new provision to the Indiana Code or the Indiana Constitution.
938 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1039 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1024
12-AN ACT to amend the Indiana Code concerning Medicaid.
40+ENGROSSED
41+HOUSE BILL No. 1024
42+A BILL FOR AN ACT to amend the Indiana Code concerning
43+Medicaid.
1344 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 12-15-15-1.2, AS AMENDED BY P.L.76-2023,
15-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-UPON PASSAGE]: Sec. 1.2. (a) As used in this section, "children's
17-hospital" means:
18-(1) a freestanding general acute care hospital that:
19-(A) is designated by the Medicare program as a children's
20-hospital; or
21-(B) furnishes inpatient and outpatient health care services to
22-patients who are predominantly individuals less than nineteen
23-(19) years of age; or
24-(2) a facility located within a freestanding general acute care
25-hospital that:
26-(A) is designated by the Medicare program as a children's
27-hospital; or
28-(B) furnishes inpatient and outpatient health care services to
29-patients who are predominately individuals less than nineteen
30-(19) years of age.
31-(b) This section applies to reimbursement for inpatient Medicaid
32-services and outpatient Medicaid services provided to a Medicaid
33-recipient who is less than nineteen (19) years of age at a children's
34-hospital that is located in a state bordering Indiana. This section does
35-not apply to reimbursement for non-emergency medical transportation.
36-HEA 1024 — Concur 2
37-(c) As used in this subsection, "cost outlier case" means a Medicaid
38-stay that exceeds a predetermined threshold, defined as the greater of
39-twice the diagnosis-related group (DRG) rate or a fixed dollar amount
40-that has been established by the office. The office shall reimburse a
41-children's hospital for covered services provided to a Medicaid
42-recipient that is described in subsection (b) at a rate set by the secretary
43-that is based on a reimbursement formula that is:
44-(1) comparable to the current federal Medicare reimbursement
45-rate for the service provided by the children's hospital; or
46-(2) one hundred thirty percent (130%) of the Medicaid
47-reimbursement rate for a service that does not have a Medicare
48-reimbursement rate.
49-The reimbursement methodology under this subsection must factor in
50-any cost outlier case in a manner that results in the final reimbursement
51-rate made to a hospital meeting the reimbursement requirements
52-specified in this subsection. The office may, upon factoring in the cost
53-outlier case in determining the final reimbursement rate, make
54-retroactive reimbursements to an out of state children's hospital to the
55-date of the initial Medicaid waiver application.
56-(d) Before September 1, 2021, the office shall apply to the United
57-States Department of Health and Human Services for any state plan
58-amendment or Medicaid waiver necessary to implement and administer
59-this section. Before June 1, 2022, the office shall apply for an
60-amendment to the Medicaid waiver concerning reimbursement under
61-this section that is necessary to implement the changes required by
62-amendments made to this section concerning factoring in any cost
63-outlier case.
64-(e) The office may adopt rules under IC 4-22-2 necessary for the
65-implementation of this section.
66-(f) This section expires July 1, 2025. 2027.
67-SECTION 2. An emergency is declared for this act.
68-HEA 1024 — Concur Speaker of the House of Representatives
69-President of the Senate
70-President Pro Tempore
71-Governor of the State of Indiana
72-Date: Time:
73-HEA 1024 — Concur
45+1 SECTION 1. IC 12-15-15-1.2, AS AMENDED BY P.L.76-2023,
46+2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
47+3 UPON PASSAGE]: Sec. 1.2. (a) As used in this section, "children's
48+4 hospital" means:
49+5 (1) a freestanding general acute care hospital that:
50+6 (A) is designated by the Medicare program as a children's
51+7 hospital; or
52+8 (B) furnishes inpatient and outpatient health care services to
53+9 patients who are predominantly individuals less than nineteen
54+10 (19) years of age; or
55+11 (2) a facility located within a freestanding general acute care
56+12 hospital that:
57+13 (A) is designated by the Medicare program as a children's
58+14 hospital; or
59+15 (B) furnishes inpatient and outpatient health care services to
60+16 patients who are predominately individuals less than nineteen
61+17 (19) years of age.
62+EH 1024—LS 6385/DI 104 2
63+1 (b) This section applies to reimbursement for inpatient Medicaid
64+2 services and outpatient Medicaid services provided to a Medicaid
65+3 recipient who is less than nineteen (19) years of age at a children's
66+4 hospital that is located in a state bordering Indiana. This section does
67+5 not apply to reimbursement for non-emergency medical transportation.
68+6 (c) As used in this subsection, "cost outlier case" means a Medicaid
69+7 stay that exceeds a predetermined threshold, defined as the greater of
70+8 twice the diagnosis-related group (DRG) rate or a fixed dollar amount
71+9 that has been established by the office. The office shall reimburse a
72+10 children's hospital for covered services provided to a Medicaid
73+11 recipient that is described in subsection (b) at a rate set by the secretary
74+12 that is based on a reimbursement formula that is:
75+13 (1) comparable to the current federal Medicare reimbursement
76+14 rate for the service provided by the children's hospital; or
77+15 (2) one hundred thirty percent (130%) of the Medicaid
78+16 reimbursement rate for a service that does not have a Medicare
79+17 reimbursement rate.
80+18 The reimbursement methodology under this subsection must factor in
81+19 any cost outlier case in a manner that results in the final reimbursement
82+20 rate made to a hospital meeting the reimbursement requirements
83+21 specified in this subsection. The office may, upon factoring in the cost
84+22 outlier case in determining the final reimbursement rate, make
85+23 retroactive reimbursements to an out of state children's hospital to the
86+24 date of the initial Medicaid waiver application.
87+25 (d) Before September 1, 2021, the office shall apply to the United
88+26 States Department of Health and Human Services for any state plan
89+27 amendment or Medicaid waiver necessary to implement and administer
90+28 this section. Before June 1, 2022, the office shall apply for an
91+29 amendment to the Medicaid waiver concerning reimbursement under
92+30 this section that is necessary to implement the changes required by
93+31 amendments made to this section concerning factoring in any cost
94+32 outlier case.
95+33 (e) The office may adopt rules under IC 4-22-2 necessary for the
96+34 implementation of this section.
97+35 (f) This section expires July 1, 2025. 2027.
98+36 SECTION 2. An emergency is declared for this act.
99+EH 1024—LS 6385/DI 104 3
100+COMMITTEE REPORT
101+Mr. Speaker: Your Committee on Public Health, to which was
102+referred House Bill 1024, has had the same under consideration and
103+begs leave to report the same back to the House with the
104+recommendation that said bill do pass.
105+(Reference is to HB 1024 as introduced.)
106+BARRETT
107+Committee Vote: Yeas 11, Nays 0
108+_____
109+COMMITTEE REPORT
110+Mr. Speaker: Your Committee on Ways and Means, to which was
111+referred House Bill 1024, has had the same under consideration and
112+begs leave to report the same back to the House with the
113+recommendation that said bill do pass.
114+(Reference is to HB 1024 as printed January 27, 2025.)
115+THOMPSON
116+Committee Vote: Yeas 21, Nays 0
117+_____
118+COMMITTEE REPORT
119+Mr. President: The Senate Committee on Health and Provider
120+Services, to which was referred House Bill No. 1024, has had the same
121+under consideration and begs leave to report the same back to the
122+Senate with the recommendation that said bill DO PASS and be
123+reassigned to the Senate Committee on Appropriations.
124+ (Reference is to HB 1024 as printed February 6, 2025.)
125+CHARBONNEAU, Chairperson
126+Committee Vote: Yeas 12, Nays 0
127+EH 1024—LS 6385/DI 104 4
128+COMMITTEE REPORT
129+Mr. President: The Senate Committee on Appropriations, to which
130+was referred Engrossed House Bill No. 1024, has had the same under
131+consideration and begs leave to report the same back to the Senate with
132+the recommendation that said bill be AMENDED as follows:
133+Page 2, line 35, reset in roman "(f) This section expires July 1,".
134+Page 2, line 35, after "2025." insert "2027.".
135+and when so amended that said bill do pass.
136+(Reference is to EHB 1024 as printed March 14, 2025.)
137+MISHLER, Chairperson
138+Committee Vote: Yeas 8, Nays 2.
139+EH 1024—LS 6385/DI 104