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Regular Session, 2013
HOUSE BILL NO. 533
BY REPRESENTATIVES KLECKLEY AND LEGER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING: (Constitutional Amendment) Creates the Medical Assistance Trust
Fund as a constitutional fund, creates accounts for each provider paying fees into the
fund, and provides for uses of the fund
A JOINT RESOLUTION1
Proposing to add Article VII, Section 10.13 of the Constitution of Louisiana, to provide2
relative to health care funding; to create the Louisiana Medical Assistance Trust3
Fund as a treasury fund; to provide for accounts within the Louisiana Medical4
Assistance Trust Fund; to provide for deposit, use, and investment of the fund; to5
provide for submission of the proposed amendment to the electors; and to provide6
for related 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. Louisiana Medical Assistance Trust Fund12
(A) There is hereby established as a special fund in the state treasury the13
Louisiana Medical Assistance Trust Fund, hereinafter referred to as "the fund",14
which shall consist of monies generated by fees as provided for in law. Subject to15
the exceptions contained in Article VII, Section (9)(A) of this constitution, and after16
compliance with the requirements of Article VII, Section 9(B) of this constitution17
relative to the Bond Security and Redemption Fund, the treasurer shall deposit all18
proceeds from the fees collected as provided for in laws relative to the Medical19 HLS 13RS-926 ORIGINAL
HB NO. 533
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Assistance Trust Fund into the fund. The monies in the fund shall be invested by the1
state treasurer in the same manner as monies in the state general fund. All interest2
earned from the investment of monies in the fund shall be deposited in and remain3
to the credit of the fund. All unexpended and unencumbered monies remaining in4
the fund at the close of each fiscal year shall remain in the fund.5
(B) The treasurer is hereby authorized to establish a separate account within6
the fund for each healthcare provider group in which fees are collected according7
to law. Monies collected from each provider group, and the interest earned on those8
monies, shall be deposited into the account created for that provider group. Any9
monies deposited into the fund from sources not required by law, and the interest10
earned on those monies, shall be deposited into a separate account within the fund,11
hereafter referred to as "the general account".12
(C) The legislature is authorized to appropriate monies from the fund only13
if the appropriation is eligible for federal financial participation under Title XIX of14
the Social Security Act, or its successor. The amount of appropriation from the fund15
shall be an annually established base rate that is no less than the average rate under16
the Louisiana medical assistance program provided for in Title XIX of the Social17
Security Act, hereafter referred to as the "Medicaid Program", in place on July 1,18
2013, adjusted annually with an inflation rate that shall not be negative, to establish19
the base rate for the next fiscal year. The balance of each account shall be20
appropriated for reimbursement of services to the provider group which paid the fee21
into the account in any fiscal year, except:22
(1) In Fiscal Year 2013-2014, one-third of the balance of each account shall23
be appropriated for reimbursement of services to the provider group which paid the24
fee into the account in any fiscal year.25
(2) In Fiscal Year 2014-2015, two-thirds of the balance of each account shall26
be appropriated for reimbursement of services to the provider group which paid the27
fee into the account in any fiscal year.28 HLS 13RS-926 ORIGINAL
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(3) Monies deposited into the general account may be appropriated for any1
Medicaid Program expenditure.2
(D) The monies appropriated from the provider accounts in the fund shall not3
be used to displace, replace, or supplant appropriations from the state general fund4
for the Medicaid Program below the amount of state general fund appropriations to5
the Medicaid Program for Fiscal Year 2013-2014.6
(E) Notwithstanding Article VII, Section 10(F) of this constitution, neither7
the governor nor the legislature may reduce the appropriation out of the fund to8
satisfy a budget deficit unless:9
(1) Such reduction is consented to in writing by two-thirds of the elected10
members of each house in a manner provided by law; and11
(2) Such reduction does not exceed the average reduction of those made to12
the appropriations for other providers under the Medicaid Program.13
Section 2. Be it further resolved that this proposed amendment shall be submitted14
to the electors of the state of Louisiana at the statewide election to be held on November 4,15
2014.16
Section 3. Be it further resolved that on the official ballot to be used at the election,17
there shall be printed a proposition, upon which the electors of the state shall be permitted18
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as19
follows:20
Do you support an amendment to authorize the legislature to create the21
Louisiana Medical Assistance Trust Fund, for the payment of Medicaid22
reimbursement to the health care provider groups paying fees into the fund?23
(Adds Article VII, Section 10.13)24 HLS 13RS-926 ORIGINAL
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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)]
Kleckley HB No. 533
Abstract: Creates the Louisiana Medical Assistance Trust Fund as a constitutional fund,
establishes accounts within the fund to deposit provider fees, and uses the accounts
to provide reimbursement for Medicaid services.
Present law (R.S. 46:2623 and 2625 and R.S. 22:842) creates the Louisiana Medical
Assistance Trust Fund (MATF) and appropriates monies in the fund for use and expenditure
under the supervision of the secretary of the Department of Health and Hospitals for the
Medicaid program. The fees collected are from nursing facilities, intermediate care facilities
for people with developmental disabilities, prescriptions, medical transportation providers
and health care premium assessments paid by Medicaid-enrolled managed care
organizations.
Proposed constitutional amendment creates the Louisiana Medical Assistance Trust Fund
as a constitutional fund and provides for the deposit of all proceeds from the fees collected
as provided for in present law into the fund. Proposed constitutional amendment establishes
separate accounts within the fund for each healthcare provider group in which fees are
collected according to law and deposits the monies collected from each provider group into
the account created for that provider group. Any monies deposited into the fund from
sources not required by law are deposited into a general account.
The amount of appropriation from the fund shall be an annually established base rate that
is no less than the average Medicaid Program rate in place on July 1, 2013, adjusted annually
with an inflation rate that shall not be negative, to establish the base rate for the next fiscal
year. The balance of each account can be appropriated for reimbursement of services to the
provider group which paid the fee into the account in any fiscal year, except:
(1) In Fiscal Year 2013-2014, 1/3 of the balance of each account may be appropriated for
reimbursement of services to the provider group which paid the fee into the account in any
fiscal year.
(2) In Fiscal Year 2014-2015, 2/3 of the balance of each account may be appropriated for
reimbursement of services to the provider group which paid the fee into the account in any
fiscal year.
(3) Monies deposited into the general account may be appropriated for any Medicaid
Program expenditure.
Proposed constitutional amendment provides for reductions to the appropriations if the
reduction is consented to in writing by two-thirds of the elected members of each house in
a manner provided by law and does not exceed the average reduction of those made to the
appropriations for other providers under the Medicaid Program.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 4, 2014.
(Adds Const. Art. VII, Section 10.13)