SLS 14RS-180 ORIGINAL Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 355 BY SENATOR MILLS FUNDS/FUNDING. Constitutional amendment to establish a budget stabilization program for Medicaid programs, certain elderly services, rehabilitation services, and other health care services. (2/3-CA13s1(A)) A JOINT RESOLUTION1 Proposing to add Article VII, Section 10.13 of the Constitution of Louisiana, relative to2 establishing a budget stabilization program for Medicaid programs, certain elderly3 services, rehabilitation services, and other health care programs; to provide for4 establishing annual appropriations necessary to fund certain health care programs;5 to provide procedures for the legislature to adjust appropriations in order to eliminate6 a projected deficit; and to specify an election for submission of the proposition to7 electors and provide a ballot proposition.8 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9 elected to each house concurring, that there shall be submitted to the electors of the state of10 Louisiana, for their approval or rejection in the manner provided by law, a proposal to add11 Article VII, Section 10.13 of the Constitution of Louisiana, to read as follows:12 ยง10.13. Budget stabilization program for Medicaid programs, certain elderly13 programs, rehabilitation services, and other health care programs14 (A)(1) The legislature shall annually appropriate the funds necessary to15 provide for Medicaid program rates to provider groups, excluding those16 provider groups that pay fees or assessments that are deposited into a special17 SB NO. 355 SLS 14RS-180 ORIGINAL Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. fund established in this constitution, which Medicaid rates shall be no less than1 the average Medicaid program rates established for Fiscal Year 2013-2014. The2 Medicaid rates may be adjusted annually by establishing the rates of inflation,3 or rebasing, if applicable, or as otherwise provided by law. The inflation rate4 adjustments shall not be negative. For the purposes of this Section, "Medicaid5 program" shall refer to the Louisiana medical assistance program provided for6 in Title XIX of the Social Security Act, or its successor.7 (2) Notwithstanding Article VII, Section 10(F) of this constitution,8 neither the governor nor the legislature may reduce the rates as provided for9 in this Paragraph to eliminate a budget deficit, except the governor may reduce10 the appropriation for the rates if the following occur:11 (a) The reduction does not exceed the average reduction made to the12 appropriations and reimbursements for other providers under the Medicaid13 program, or its successor; and14 (b)(i) If the legislature is in session, the reduction shall receive written15 consent of two-thirds of the elected members of each house in the manner16 provided by law; or17 (ii) If the legislature is not in session, the reduction is approved by a18 favorable vote of two-thirds of the members of the Joint Legislative Committee19 on the Budget, or its successor.20 (B)(1) The legislature shall annually appropriate the funds necessary to21 provide funding for any health care agency operated under the purview of the22 Department of Health and Hospitals, or its successor, rehabilitation services23 operated or managed by the Louisiana Workforce Commission, or its successor,24 or elderly services program operated or managed by the Governor's Office of25 Elderly Affairs, or its successor, that is not less than the appropriation for those26 agencies or facilities in Fiscal Year 2013-2014. For the purpose of this Section,27 "health care agency or facility" shall refer to the agencies and facilities that are28 owned, operated or managed by the Department of Health and Hospitals, or its29 SB NO. 355 SLS 14RS-180 ORIGINAL Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. successor, and shall exclude the Medicaid program.1 (2) Notwithstanding the provisions of Article VII, Section 10(F) of this2 constitution, neither the governor nor the legislature may reduce the3 appropriations for any health care agency operated under the purview of the4 Department of Health and Hospitals, or its successor, rehabilitation services5 agency operated or managed by the Louisiana Workforce Commission, or its6 successor, or elderly services program operated or managed by the Governor's7 Office of Elderly Affairs, or its successor, to satisfy a budget deficit, except the8 governor may reduce the appropriations if the following occur:9 (a) The reductions are proportionally equivalent among all agencies and10 facilities provided for in Paragraphs A and B of this Section, and;11 (b)(i) If the legislature is in session, the reductions receive written12 consent of two-thirds of the elected members of each house in a manner13 provided by law; or14 (ii) If the legislature is not in session, the reductions are approved by a15 favorable vote of two-thirds of the members of the Joint Legislative Committee16 on the Budget, or its successor.17 Section 2. Be it further resolved that this proposed amendment shall be submitted18 to the electors of the state of Louisiana at the statewide election to be held on November 4,19 2014.20 Section 3. Be it further resolved that on the official ballot to be used at said election21 there shall be printed a proposition, upon which the electors of the state shall be permitted22 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as23 follows:24 Do you support an amendment to establish a budget stabilization program for25 Medicaid programs, certain non-Medicaid health care programs operated26 under the purview of the Department of Health and Hospitals, elderly27 programs, and rehabilitation services; provide for annual appropriation levels28 for such programs, and provide for adjusting such appropriations in the event29 SB NO. 355 SLS 14RS-180 ORIGINAL Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of a budget deficit in the current year or for the ensuing fiscal year?1 (Adds Art. VII, Section 10.13)2 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jay R. Lueckel. DIGEST Mills (SB 355) Proposed constitutional amendment provides for the stabilization of the budget for the Medicaid program, other Department of Health and Hospitals agencies and facilities, and the Louisiana Workforce Commission's rehabilitation services program. Proposed constitutional amendment requires the legislature to annually appropriate the funds necessary to provide for Medicaid reimbursement rates to providers, excluding the rates for provider groups that pay fees or assessments that are deposited in fund established by constitution, that are no less than the average Medicaid rates established for FY 2013-2014. Further, the proposed constitutional amendment provides that Medicaid reimbursement rates may be adjusted annually by inflation or rebasing and such adjustments shall not be negative. Proposed constitutional amendment also provides for reductions in Medicaid reimbursement rates to satisfy a budget deficit only if the following occur: (1)The reduction does not exceed the average reduction of those made to the appropriations and reimbursements for other providers under the Medicaid program; and (2)If the legislature is in session, the reduction shall receive written consent of 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 a favorable vote of two-thirds of the members of the Joint Legislative Committee on the Budget. Proposed constitutional amendment requires the legislature to annually appropriate the funds necessary to provide funding for the Department of Health and Hospitals' agencies and facilities and Louisiana Workforce Commission's rehabilitation services that is no less than the appropriation for these agencies, facilities and services in FY 2013-2014. Proposed constitutional amendment further provides for reductions to the appropriation for these health care and rehabilitation programs to satisfy a budget deficit only if the following occur: (1)The reductions are proportionally equivalent among all agencies, facilities and programs provided for the constitutional amendment; and (2)If the legislature is in session, the reductions receive written consent of 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 a favorable vote of two-thirds of the members of the Joint Legislative Committee on the Budget. Specifies submission of the amendment to the voters at the statewide election to be held November 4, 2014. (Adds Const. Art. VII, Sec. 10.13)