ENROLLED
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Regular Session, 2013
HOUSE BILL NO. 532
BY REPRESENTATIVES KLECKLEY, ADAMS, ARMES, BARROW, BERTHELOT,
BILLIOT, WESLEY BISHOP, BROSSETT, BROWN, BURRELL, CARMODY,
CARTER, CHANEY, COX, CROMER, DIXON, DOVE, GUILLORY,
HARRISON, HOFFMANN, HUNTER, KATRINA JACKSON, JAMES,
JEFFERSON, LEGER, LORUSSO, MONTOUCET, MORENO, ORTEGO,
PYLANT, REYNOLDS, SMITH, ST. GERMAIN, THIBAUT, THIERRY, ALFRED
WILLIAMS, AND PATRICK WILLIAMS AND SENATORS JOHNS, CROWE,
LONG, MILLS, TARVER, AND THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
A JOINT RESOLUTION1
Proposing to add Article VII, Section 10.13 of the Constitution of Louisiana, to provide2
relative to health care funding; to provide for a hospital stabilization formula; to3
provide for a hospital assessment; to create the Hospital Stabilization Fund as a4
treasury fund; to provide for deposit, use, and investment of the fund; to provide for5
submission of the proposed amendment to the electors; and to provide for related6
matters.7
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8
elected to each house concurring, that there shall be submitted to the electors of the state of9
Louisiana, for their approval or rejection in the manner provided by law, a proposal to add10
Article VII, Section 10.13 of the Constitution of Louisiana, to read as follows:11
ยง10.13. Hospital stabilization formula and assessment; Hospital Stabilization Fund12
(A) Hospital Stabilization Formula. (1) The legislature may annually adopt13
a Hospital Stabilization Formula, hereafter referred to in this Section as "the14
formula", by concurrent resolution by a favorable vote of a majority of the elected15
members of each house. Such resolution shall be referred to the standing committees16
of the legislature that hear the general appropriation bill. The formula shall, to the17
maximum extent possible, enhance the economic viability of Louisiana hospitals and18
reduce shifting the cost of caring for Louisiana's needy residents to the state's insured19
residents.20 ENROLLEDHB NO. 532
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(2)(a) The first formula established pursuant to Subparagraph (1) of this1
Paragraph, which shall require a favorable vote of two-thirds of the elected members2
of each house for adoption, shall define and establish as the base reimbursement3
level under the Louisiana medical assistance program provided for in Title XIX of4
the Social Security Act, hereafter referred to as the "Medicaid Program", to hospitals5
for inpatient and outpatient services in Fiscal Year 2012-2013. The formula shall6
also provide for the preservation and protection of rural hospitals as provided for by7
law. Each formula established thereafter may apply a rate of inflation, which shall8
not be a negative rate, to the base reimbursement level from the previous formula9
adopted by the legislature.10
(b) Each formula shall also include and establish assessments to be paid by11
hospitals and the basis on which such assessments shall be calculated, provided the12
amount of the assessments does not exceed the nonfederal share of the13
reimbursement enhancements.14
(c) Each formula shall also establish reimbursement enhancements under15
the Medicaid Program, or its successor, achieving the maximum reimbursement by16
federal law and resulting in distributing such reimbursement enhancements17
exclusively among hospitals for hospital services. Reimbursement enhancements18
may also be distributed for uninsured services delivered.19
(d) Each formula shall also include any additional provisions necessary to20
the implementation of the formula. Neither the assessments nor the reimbursement21
enhancements established in the formula adopted by the legislature shall be22
implemented until each has been approved by the federal authority which23
administers the Medicaid Program.24
(3) The base reimbursement level resulting from the formula shall not be25
paid from the Hospital Stabilization Fund.26
(4) No additional assessment shall be collected and any assessment shall be27
terminated for the remainder of the fiscal year from the date on which any of the28
following occur:29
(a) The legislature fails to adopt a formula for the subsequent fiscal year.30 ENROLLEDHB NO. 532
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(b) The Department of Health and Hospitals, or its successor or contractors,1
reduces or does not pay reimbursement enhancements established in the current2
formula as adopted by the legislature.3
(c) The appropriations provided for in Subparagraph (B)(2) of this Section4
are reduced.5
(5) The treasurer shall return any monies collected after the date of6
termination of an assessment to the hospital from which it was collected.7
(B) Appropriation. (1) The legislature shall annually appropriate an amount8
necessary to fund the base reimbursement level for hospitals established in the most9
recent formula adopted by the legislature.10
(2) The legislature shall annually appropriate the balance of the Hospital11
Stabilization Fund solely to fund the reimbursement enhancements as provided in the12
most recent formula adopted by the legislature.13
(3) Notwithstanding Article VII, Section 10(F) of this constitution, neither14
the governor nor the legislature may reduce the appropriation funding the base15
reimbursement level or the reimbursement enhancements to satisfy a budget deficit,16
except the governor may reduce the appropriation to the base reimbursement level17
if the following occur:18
(a) Such reduction does not exceed the average reduction of those made to19
the appropriations and reimbursement for other providers under the Medicaid20
Program, or its successor; and21
(b)(i) If the legislature is in session, the reduction is consented to in writing22
by two-thirds of the elected members of each house in a manner provided by law; or23
(ii) If the legislature is not in session, the reduction is approved by two-thirds24
of the members of the Joint Legislative Committee on the Budget, or its successor.25
(C) Hospital Stabilization Fund. There is hereby established as a special1
fund in the state treasury the Hospital Stabilization Fund, hereafter referred to as "the2
fund". After compliance with the requirements of Article VII, Section 9(B) of this3
constitution relative to the Bond Security and Redemption Fund, the treasurer shall4
deposit all proceeds from the assessment collected pursuant to the Hospital5 ENROLLEDHB NO. 532
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Stabilization Formula provided for in this Section. The monies in the fund shall be1
invested in the same manner as monies in the state general fund, and all interest2
earned on the investment of the fund shall be deposited in and credited to the fund.3
Appropriations from the fund shall be restricted to funding the reimbursement4
enhancements established in the Hospital Stabilization Formula adopted by the5
legislature for the fiscal year in which the assessment is collected.6
Section 2. Be it further resolved that this proposed amendment shall be submitted7
to the electors of the state of Louisiana at the statewide election to be held on November 4,8
2014, or the first statewide election occurring after the adoption of this Joint Resolution.9
Section 3. Be it further resolved that on the official ballot to be used at the election,10
there shall be printed a proposition, upon which the electors of the state shall be permitted11
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as12
follows:13
Do you support an amendment to create the Hospital Stabilization Fund to14
stabilize and protect Medicaid reimbursements for health care services by15
depositing assessments paid by hospitals, as authorized by the legislature,16
into a fund to support Louisiana hospital reimbursement? (Adds Article VII,17
Section 10.13)18
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: