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Coding: Words which are struck through are deletions from existing law;
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Regular Session, 2010
SENATE BILL NO. 766
BY SENATOR MCPHERSON
HEALTH CARE. Provides for a common reimbursement methodology for community
mental health centers and community mental health clinics. (8/15/10)
AN ACT1
To enact Part II of Chapter 58 of Title 46 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 46:2745 and 2746, relative to reimbursement methodology for3
mental health services; to direct the Department of Health and Hospitals to establish4
a uniform reimbursement methodology for community mental health centers and5
community mental health clinics; to direct the department to promulgate rules and6
regulations relative to the uniform reimbursement methodology; and to provide for7
related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. Part II of Chapter 58 of Title 46 of the Louisiana Revised Statutes of10
1950, comprised of R.S. 46:2745 and 2746, is hereby enacted to read as follows:11
PART II. REIMBURSEMENT METHODOLOGY FOR COMMUNITY MENTAL12
HEALTH CENTERS AND COMMUNITY MENTAL HEALTH CLINICS13
§2745. Legislative findings and purpose14
A.(1) The current methodology for reimbursement for services to15
indigent and Medicaid recipients for mental health services results in a16
significant discrepancy between payment rates for community mental health17 SB NO. 766
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
centers and community mental health clinics.1
(2) The current methodology has resulted in ready access to mental2
health services for persons covered by Medicare and other health insurance3
programs, while indigent and Medicaid patients are often unable to access4
desperately needed mental health services.5
B. The purpose of this Part is to change the reimbursement methodology6
for community mental health centers and community mental health clinics7
reimbursed through the office of mental health and the Medicaid program to8
ensure that such centers and clinics are paid an equal rate that is reasonable9
and adequate.10
§2746. Reimbursement methodology; rules and regulations11
A. The Department of Health and Hospitals shall establish a uniform12
reimbursement methodology for community mental health centers and13
community mental health clinics.14
B. No later than October 1, 2010, the department shall promulgate rules15
and regulations in accordance with the Administrative Procedure Act to16
provide for a uniform reimbursement system. The rules and regulations shall17
include, at a minimum, the following:18
(1) Payment based on costs commensurate with the resource19
requirements of patients being served in community mental health centers and20
community mental health clinics.21
(2) Incentives to encourage the admission and care of mental health22
patients.23
(3) A requirement that all providers be enrolled in the Medicare24
program.25
(4) A pass-through for property taxes and property insurance.26
(5) Utilization of inflation factors that is predictive of actual cost27
increases during the rate year.28
(6) A method for providing interim adjustments to the rates for29 SB NO. 766
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
unanticipated changes in costs.1
(7) A provision for cost reports that shall be prepared in accordance2
with the cost-reporting instructions adopted by the Medicare program using the3
definition of allowable and non-allowable costs contained in the Medicare and4
Medicaid provider reimbursement manual, with the exception that the5
department shall determine due dates and extensions.6
Section 2. The Louisiana State Law Institute is hereby directed to place the7
provisions of R.S. 46: 2741 through 2744 in their entirety within Part I of Chapter 58 of Title8
46 of the Louisiana Revised Statutes of 1950, and to designate Chapter 58 as9
"Reimbursement Methodology" and Part I as "Reimbursement Methodology of Nursing10
Homes".11
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Greg Waddell.
DIGEST
Proposed law provides for legislative findings and purpose relative to the reimbursement
methodology for community mental health centers and community mental health clinics.
Finds that the current methodology results in different payment rates for centers and clinics
and better access to mental health services for individuals with Medicare and other health
insurance programs.
Proposed law requires DHH to establish a uniform reimbursement methodology for
community mental health centers and community mental health clinics to ensure that centers
and clinics are paid an equal rate that is reasonable and adequate.
Proposed law requires that DHH promulgate rules and regulations to implement a uniform
reimbursement methodology for community mental health centers and community mental
health clinics.
Effective August 15, 2010.
(Adds R.S. 46:2745 and 2746)