HLS 13RS-539 ORIGINAL Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2013 HOUSE BILL NO. 233 BY REPRESENTATIVES SMITH, BARROW, WESLEY BISHOP, BROSSETT, BURRELL, KATRINA JACKSON, JAMES, MORENO, AND PATRI CK WILLIAMS AND SENATOR BROOME Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MEDICAID: Provides that eligibility standards for the La. Medicaid program shall conform to those established by the Affordable Care Act and requires reporting of program outcomes AN ACT1 To enact Chapter 8-B of Title 46 of the Louisiana Revised Statutes of 1950, to be comprised2 of R.S. 46:979.1 through 979.5, relative to the medical assistance program; to3 provide for eligibility for benefits of the medical assistance program; to require state4 participation in the medical assistance program expansion provided in federal law;5 to provide for duties of the secretary of the Department of Health and Hospitals; to6 provide relative to the medical assistance program state plan; to authorize7 promulgation of rules; to require reports concerning the medical assistance program8 to the legislative committees on health and welfare and the governor; to specify the9 minimum required content of such reports; and to provide for related matters.10 Be it enacted by the Legislature of Louisiana:11 Section 1. Chapter 8-B of Title 46 of the Louisiana Revised Statutes of 1950,12 comprised of R.S. 46:979.1 through 979.5, is hereby enacted to read as follows: 13 CHAPTER 8-B. MEDICAL ASSISTANCE PROGRAM EXPANSI ON AND14 ENHANCED OUTCOMES REPORTI NG15 §979.1. Definitions16 As used in this Chapter, the following terms shall have the meaning ascribed17 to them in this Section:18 HLS 13RS-539 ORIGINAL HB NO. 233 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) "ACA" and "Affordable Care Act" mean the following acts of congress,1 collectively:2 (a) The Patient Protection and Affordable Care Act, which originated as H.R.3 3590 in the One Hundred Eleventh United States Congress and became Public Law4 111-148.5 (b) The Health Care and Education Reconciliation Act, which originated as6 H.R. 4872 in the One Hundred Eleventh United States Congress and became Public7 Law 111-152.8 (2) "Department" means the Department of Health and Hospitals.9 (3) "Medicaid" and "medical assistance program" mean the medical10 assistance program provided for in Title XIX of the Social Security Act.11 (4) "Secretary" means the secretary of the Department of Health and12 Hospitals.13 §979.2. Legislative findings; declaration14 A. The Legislature of Louisiana does hereby find and declare the following:15 (1) The Affordable Care Act, referred to hereafter in this Chapter as the16 "ACA", sets forth health policy reforms which reshape the way virtually all17 Americans will receive and finance their health care.18 (2) In a decision announced on June 28, 2012, the Supreme Court of the19 United States in National Federation of Independent Business Et Al. v. Sebelius,20 Secretary of Health and Human Services, Et Al. upheld the overall constitutionality21 of the ACA; but in the same ruling, a majority of the court held that the mandatory22 expansion of Medicaid eligibility as provided in the ACA is unconstitutionally23 coercive of states, thereby making participation in the Medicaid expansion a24 voluntary proposition for each state.25 (3) At twenty-five percent of the federal poverty level, or just under five26 thousand eight hundred dollars in annual income for a family of four presently, the27 income eligibility threshold of this state for Medicaid benefits for parents of28 Medicaid-eligible children is the second-lowest in the nation.29 HLS 13RS-539 ORIGINAL HB NO. 233 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (4) All of the following provisions of the ACA apply in states which1 participate in the Medicaid expansion:2 (a) The Medicaid income eligibility threshold increases to one hundred3 thirty-three percent of the federal poverty level, or thirty thousand seven hundred4 thirty-three dollars in annual income for a family of four presently, for all persons5 of ages nineteen to sixty-four beginning on January 1, 2014.6 (b) The federal share of funding for Medicaid benefits for persons who7 became eligible due to the expansion is one hundred percent from 2014 through8 2017.9 (c) The federal share of funding for Medicaid benefits for persons who10 became eligible due to the expansion phases down from one hundred percent to11 ninety percent between 2017 and 2020, with the federal share remaining at ninety12 percent in ensuing years.13 (5) Within federally provided guidelines, the secretary of the department14 may establish and modify eligibility standards for the Medicaid program through15 amendments to the Medicaid state plan and to administrative rules providing for16 operation of the program.17 (6) The legislature declares that due to compelling moral and economic18 reasons, participation in the expansion of Medicaid eligibility as provided in the19 ACA is in the best interest of this state.20 B. In a publication entitled "Louisiana Medicaid Annual Report", the21 department traditionally provides summary data on inputs (spending) and outputs22 (services delivered) of the Medicaid program; however, as evidenced in part by the23 final passage of Senate Bill No. 207 of the 2011 Regular Session of the Legislature24 and Senate Bill No. 629 of the 2012 Regular Session of the Legislature, the25 legislature intends that the department should undertake a more comprehensive and26 transparent effort to report actual health outcomes of the Medicaid program and27 program accountability measures, as such enhanced reporting would be essential to28 facilitation of a clearer understanding by policymakers and the general public of the29 HLS 13RS-539 ORIGINAL HB NO. 233 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. effectiveness of a program which would serve nearly forty percent of this state's1 population if expanded pursuant to the provisions of this Chapter.2 §979.3. Purposes3 The purposes of this state in expanding Medicaid eligibility to conform to the4 standards provided in the ACA, as required by this Chapter, are as follows:5 (1) To maximize the number of Louisianians who are covered by some form6 of health insurance.7 (2) To provide basic health coverage to the working poor of the state who8 are not offered insurance through their employer and do not earn enough money to9 meet basic family needs and pay for private health insurance.10 (3) To assure health care providers who serve low- to moderate-income11 persons of some amount of compensation for the care they provide, as the ACA12 provides for a dramatic reduction in funding to federal programs which currently13 finance care for the uninsured as a means of financing the Medicaid expansion.14 (4) To avert the economic and human costs of crises in both access to health15 care and health services financing which are likely to result from not participating16 in an expansion of a major federal program while other sources of financing for17 medical care for the uninsured and the indigent are being drastically reduced or18 eliminated.19 §979.4. Expansion of Medicaid eligibility; duties of the secretary of the Department20 of Health and Hospitals21 On or before September 1, 2013, the secretary of the department shall take22 all of the following actions:23 (1) File a Medicaid state plan amendment with the Centers for Medicare and24 Medicaid Services to provide that beginning on January 1, 2014, eligibility standards25 for medical assistance program benefits in Louisiana conform to the minimum26 eligibility standards as provided in the Patient Protection and Affordable Care Act27 (P.L. 111-148) and codified in federal regulations relative to medical assistance28 program coverage (42 CFR 435.119).29 HLS 13RS-539 ORIGINAL HB NO. 233 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Promulgate all rules and regulations in accordance with the1 Administrative Procedure Act as are necessary to implement the provisions of this2 Chapter.3 §979.5. Medicaid program outcomes; reporting requirements4 A. On or before July 1, 2014, and annually thereafter, the secretary of the5 department shall provide to the House and Senate committees on health and welfare6 and to the governor a written report covering the most recent one-year period which7 includes at minimum all of the items required hereafter in this Section.8 B. The secretary shall make the report provided for in this Section publicly9 available on its Internet website.10 C. The report shall include but shall not be limited to the following items:11 (1) Evaluation of overall health outcomes and quality of care for Medicaid12 enrollees of this state and recommendations for policy changes to improve such13 outcomes and quality of care. Measurements on which the secretary shall base the14 evaluation provided for in this Paragraph shall be derived from a metric which is15 generally accepted by public and private health care providers such as the Healthcare16 Effectiveness Data and Information Set (HEDIS).17 (2) Evaluation of major barriers to access to health care by Medicaid18 enrollees of this state and recommendations for policy changes to eliminate such19 barriers.20 (3) Summary of successful initiatives in this state for disease prevention and21 early diagnosis and management of chronic conditions among Medicaid enrollees of22 this state.23 (4) Trends in enrollment of health care providers in the Medicaid program24 of this state during the period covered by the report.25 (5) Major challenges faced by health care providers enrolled in the Medicaid26 program of this state and recommendations for policy changes to address such27 challenges.28 HLS 13RS-539 ORIGINAL HB NO. 233 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (6) Impacts on health outcomes and health care costs in the state during the1 period covered by the report which resulted from participation by health care2 providers enrolled in the Medicaid program in any federal or state initiatives for3 coordinated care or patient-centered medical homes.4 (7) Such other information as the secretary deems appropriate to convey a5 clear and sufficiently complete assessment of the impact of the Medicaid program6 in this state.7 Section 2. This Act shall become effective upon signature by the governor or, if not8 signed by the governor, upon expiration of the time for bills to become law without signature9 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If10 vetoed by the governor and subsequently approved by the legislature, this Act shall become11 effective on the day following such approval.12 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Smith HB No. 233 Abstract: Provides that eligibility standards for the La. Medicaid program shall conform to those established by the Affordable Care Act and requires reporting of program outcomes to the legislative committees on health and welfare and to the governor. Proposed law requires the secretary of DHH to take such actions as are necessary to expand Louisiana's Medicaid eligibility standards to conform to those established by the Affordable Care Act (ACA) commencing on January 1, 2014. Provides that such actions by the secretary shall include: (1)On or before September 1, 2013, filing of the Medicaid state plan amendment necessary to expand Medicaid eligibility in accordance with proposed law. (2)On or before September 1, 2013, promulgating all rules and regulations as are necessary to expand Medicaid eligibility in accordance with proposed law. Proposed law declares that the purposes of the state in expanding Medicaid eligibility as provided in proposed law are as follows: (1)To maximize the number of Louisianians who are covered by some form of health insurance. (2)To provide basic health coverage to the working poor of the state who are not offered insurance through their employer and do not earn enough money to meet basic family needs and pay for private health insurance. HLS 13RS-539 ORIGINAL HB NO. 233 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3)To assure health care providers who serve low- to moderate-income persons of some amount of compensation for the care they provide. (4)To avert the economic and human costs of crises in both access to health care and health services financing which are likely to result from not participating in an expansion of a major federal program while other sources of financing for medical care for the uninsured and the indigent are being drastically reduced or eliminated. Proposed law requires that on or before July 1, 2014, and annually thereafter, the secretary of DHH shall provide to the legislative committees on health and welfare and the governor a written report covering the most recent one-year period which includes at minimum all of the following items: (1)Evaluation of overall health outcomes and quality of care for La. Medicaid enrollees, and recommendations for policy changes to improve such outcomes and quality of care. Requires that the secretary base such evaluation on measurements derived from a metric which is generally accepted by public and private health care providers such as the Healthcare Effectiveness Data and Information Set (HEDIS). (2)Evaluation of major barriers to access to health care by La. Medicaid enrollees and recommendations for policy changes to eliminate such barriers. (3)Summary of successful initiatives in La. for disease prevention and early diagnosis and management of chronic conditions among Medicaid enrollees. (4)Trends in enrollment of health care providers in the La. Medicaid program during the period covered by the report. (5)Major challenges faced by health care providers enrolled in the La. Medicaid program and recommendations for policy changes to address such challenges. (6)Impacts on health outcomes and health care costs in La. during the period covered by the report which resulted from participation by health care providers enrolled in the Medicaid program in any federal or state initiatives for coordinated care or patient-centered medical homes. (7)Such other information as the secretary deems appropriate to convey a clear and sufficiently complete assessment of the impact of the Medicaid program in La. Proposed law requires DHH to make such report publicly available on its website. Effective upon signature of governor or lapse of time for gubernatorial action. (Adds R.S. 46:979.1-979.5)