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Kleckley (HB 532) Act No. 438
Proposed constitutional amendment authorizes the annual adoption of a Hospital
Stabilization Formula, hereinafter "formula". The first formula shall be established by
concurrent resolution and shall require a favorable vote of 2/3 of the elected members of each
house. In subsequent years, the resolution shall require a favorable vote of a majority of the
elected members of each house. The formula provided for in the resolution includes:
(1)A base reimbursement level which is the payment levels under the Medicaid Program
to hospitals for inpatient and outpatient services in FY 2012-2013 in the first year and
each subsequent formula may apply a rate of inflation to the base reimbursement
level rate from the previous fiscal year.
(2)Assessments to be paid by La. hospitals, provided the amount of the assessment does
not exceed the nonfederal share of the reimbursement enhancement.
(3)Reimbursement enhancements for those hospitals subject to an assessment provided
for in the formula.
(4)Any additional provisions necessary to the implementation of the formula. Neither
the assessments nor the reimbursement enhancements established in the formula
adopted by the legislature shall be implemented until each has been approved by the
federal authority which administers the Medicaid Program.
Proposed constitutional amendment prohibits the base reimbursement level from being paid
from the Hospital Stabilization Fund.
Proposed constitutional amendment provides that no additional assessment shall be collected
and any assessment shall be terminated for the remainder of the fiscal year from the date on
which any of the following occur:
(1)The legislature fails to adopt a formula for the subsequent fiscal year.
(2)The Dept. of Health and Hospitals reduces or does not pay reimbursement
enhancements established in the current formula.
(3)The appropriations provided for in proposed constitutional amendment are reduced.
Proposed constitutional amendment provides that the treasurer shall return any monies
collected after the date of termination of an assessment to the hospital from which it was
collected.
Proposed constitutional amendment provides for annual appropriation of an amount
necessary to fund the base reimbursement level for hospitals and appropriate the balance of
the Hospital Stabilization Fund created in the proposed constitutional amendment for
reimbursement enhancements.
Proposed constitutional amendment provides for reductions to the appropriations if the
following occur:
(1)The reduction does not exceed the average reduction of those made to the
appropriations and reimbursement for other providers under the Medicaid Program.
(2)If the legislature is in session, the reduction is consented to in writing by two-thirds
of the elected members of each house in a manner provided by law, or if the
legislature is not in session, the reduction is approved by two-thirds of the members
of the Joint Legislative Committee on the Budget.
Proposed constitutional amendment creates the Hospital Stabilization Fund and provides
appropriations only for funding the reimbursement enhancement established in the Hospital
Stabilization Formula for the fiscal year in which the assessment is collected. Page 2 of 2
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 4, 2014, or the first statewide election occurring after the adoption of this
Joint Resolution.
(Adds Const. Art. VII, ยง10.13)