The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Jay Lueckel.
DIGEST
Mills (SB 474)
Present law provides for avoidance for budget deficits.
Proposed law provides that notwithstanding any of these provisions, the following deficit
avoidance procedures shall apply to the Medicaid programs, non-Medicaid health care, certain
elderly services, and rehabilitation programs specified herein.
Proposed law provides relative to mid-year adjustments:
(1)(a)For Medicaid programs, in any fiscal year upon receiving notification by the Joint
Legislative Committee on the Budget (JLCB) that a projected deficit exists,
neither the governor nor the legislature may reduce Medicaid program rates to
provider groups below the average Medicaid program rates established for FY
2013-2014, excluding any provider groups that pay fees or assessments that are
deposited into a special fund that may be established in the Louisiana constitution,
to eliminate a budget deficit, except the governor may reduce the appropriation for
the base rate if the following occur:
(i)The reduction does not exceed the average reduction of those made to the
appropriations and reimbursement for other providers under the Medicaid
program, or its successor.
(ii)The reductions require written consent of two-thirds of the legislature
while in session or two-thirds vote of JLCB when not in session.
(b)For non-Medicaid programs, in any fiscal year upon receiving notification by
JLCB that a projected deficit exists, neither the governor nor the legislature may
reduce the budget for any health care agency or facility operated under the
purview of the Department of Health and Hospitals (DHH), or its successor, or
rehabilitation services operated or managed by the Louisiana Workforce
Commission (LWC), or its successor, or elderly services operated or managed by
the Governor's Office of Elderly Affairs, or its successor, less than the
appropriation for any such agencies or facilities in FY 2013-2014 to eliminate a
budget deficit, except the governor may reduce the appropriations if the following
occur:
(i)The reductions are proportionally equivalent among all agencies and
facilities provided for in proposed law. (ii)The reductions require written consent of two-thirds of the legislature
while in session or two-thirds vote of JLCB when not in session.
Proposed law provides for ensuing year projected deficits:
(2)(a)For Medicaid programs, the legislature shall annually appropriate the funds
necessary to provide for Medicaid program rates to provider groups which are no
less than the average Medicaid program rates established for FY 2013-2014,
excluding those provider groups that pay fees or assessments that are deposited
into a special fund that may be established in the Louisiana constitution. The
Medicaid rates may be adjusted annually by establishing the rates of inflation, or
rebasing, if applicable. Such inflation rate adjustments shall not be negative. If
the official forecast of recurring money for the next fiscal year is at least one
percent less than the official forecast of recurring money for the current fiscal
year, neither the governor nor the legislature may reduce the base rate as provided
for in proposed law to eliminate a budget deficit in the next fiscal year, except the
governor may reduce the appropriation for the base rate if the following occur:
(i)The reduction does not exceed the average reduction of those made to the
appropriations and reimbursement for other providers under the Medicaid
program, or its successor; and
(ii)The reductions require written consent of two-thirds of the legislature
while in session or two-thirds vote of JLCB when not in session.
(3)(a)For non-Medicaid programs, the legislature shall annually appropriate the
funds necessary to provide for Medicaid Program rates to provider groups
which are no less than the average Medicaid program rates established for
FY 2013-2014, excluding any provider groups that pay fees or assessments
that are deposited into a special fund that may be established in the
Louisiana constitution. The Medicaid rates may be adjusted annually by
establishing the rates of inflation, rebasing, if applicable; as otherwise
provided by law. Such inflation rate adjustments shall not be negative. If
the official forecast of recurring money for the next fiscal year is at least
one percent less than the official forecast of recurring money for the
current fiscal year, neither the governor nor the legislature may reduce the
base rates as provided for in proposed law to eliminate a budget deficit in
the next fiscal year, except the governor may reduce the appropriation for
the base rate if the following occur:
(i)The reduction does not exceed the average reduction of those made
to the appropriations and reimbursement for other providers under
the Medicaid Program, or its successor; and (ii)The reductions require written consent of two-thirds vote of the
legislature while in session or two-thirds vote of JLCB when not in
session.
(b)For non-Medicaid programs, the legislature shall annually appropriate the
funds necessary to provide funding for any health care agency or facility
operated under the purview of DHH, or its successor, or rehabilitation
services operated or managed by LWC, or its successor, or elderly services
operated or managed by the Governor's Office of Elderly Affairs, that is
not less than the appropriation for any such agencies or facilities in FY
2013-2014. If the official forecast of recurring money for the next fiscal
year is at least one percent less than the official forecast of recurring
money for the current fiscal year, neither the governor nor the legislature
may reduce the budget for any health care agency under the purview of
DHH or its successor, or rehabilitation services operated or managed by
LWC, or its successor, or elderly services operated or managed by the
Governor's Office of Elderly Affairs, to eliminate a budget deficit in the
next fiscal year, except the governor may reduce the appropriations if the
following occur:
The reductions require written consent of two-thirds of the legislature while in session or two-
thirds vote of JLCB when not in session.
Proposed law provides that "Medicaid Program" shall refer to the Louisiana medical assistance
program provided for in Title XIX of the Social Security Act, or its successor, and "health care
agency or facility" shall refer to the agencies and facilities that are owned, operated or managed
by DHH, or its successor, and shall exclude the Medicaid Program.
Effective July 1, 2014.
(Adds R.S. 39:75(F))