SLS 15RS-542 ENGROSSED 2015 Regular Session SENATE BILL NO. 167 BY SENATOR BUFFINGTON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MEDICAID. Provides relative to the Medical Assistance Program. (8/1/15) 1 AN ACT 2 To enact R.S. 46:2762, relative to the Medical Assistance Program; to provide for 3 uncompensated care costs for hospital inpatient acute care services; to require a 4 methodology for reimbursing uncompensated care costs; to provide for legislative 5 oversight; and to provide for related matters. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 46:2762 is hereby enacted to read as follows: 8 ยง2762. Methodology for reimbursing uncompensated care costs for hospital 9 inpatient acute care service 10 A. Prior to August first of each year, the Department of Health and 11 Hospitals shall annually develop and implement a methodology for reimbursing 12 uncompensated care costs for inpatient services provided in nonrural acute care 13 hospitals in any parish having a population of not less than one hundred 14 fourteen thousand and not more than one hundred eighteen thousand according 15 to the latest federal decennial census or having a population of not less than two 16 hundred forty-five thousand and not more than three hundred thousand 17 according to the latest federal decennial census. The methodology developed by Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 167 SLS 15RS-542 ENGROSSED 1 the department shall be reviewed and approved by the House Committee on 2 Health and Welfare and the Senate Committee on Health and Welfare prior to 3 implementation. The department shall calculate the increase in total 4 uncompensated care costs of each noncooperative endeavor agreement hospital 5 over the uncompensated care costs of the same hospital in 2012. Subject to 6 approval by the Centers for Medicare and Medicaid Services, the department 7 shall use this calculation to develop and implement a methodology for 8 reimbursing each noncooperative endeavor agreement hospital the amount of 9 the increase in uncompensated care costs. Reimbursements to the cooperative 10 endeavor agreement hospital shall be considered a payment to the cooperative 11 endeavor agreement hospital and therefore, shall reduce the amount payable 12 directly or indirectly to the noncooperative endeavor agreement hospital. 13 B. For purposes of this Section, the term "noncooperative endeavor 14 agreement hospital" shall mean a nonrural acute care hospital pursuant to 15 Subsection A of this Section that has not entered into a cooperative endeavor 16 agreement with the state for the provision of indigent inpatient acute care 17 services. The term "cooperative endeavor agreement hospital" shall mean a 18 nonrural acute care hospital or other organization pursuant to Subsection A of 19 this Section that has entered into a cooperative endeavor agreement with the 20 state for the provision of indigent inpatient acute care services. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Christopher D. Adams. DIGEST SB 167 Engrossed 2015 Regular Session Buffington Proposed law provides prior to August first of each year, the Department of Health and Hospitals shall annually develop and implement a methodology for reimbursing uncompensated care costs for inpatient services provided in nonrural acute care hospitals in any parish having a population of not less than 114,000 and not more than 118,000 according to the latest federal decennial census or having a population of not less than 245,000 and not more than 300,000 according to the latest federal decennial census. Proposed law provides the methodology developed by DHH shall be reviewed and approved by the House Committee on Health and Welfare and the Senate Committee on Health and Welfare prior to implementation. DHH shall calculate the increase in total uncompensated care costs of each noncooperative endeavor agreement hospital over the uncompensated care Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 167 SLS 15RS-542 ENGROSSED costs of the same hospital in 2012. Subject to approval by the Centers for Medicare and Medicaid Services, DHH shall use this calculation to develop and implement a methodology for reimbursing each noncooperative endeavor agreement hospital the amount of the increase in uncompensated care costs. Reimbursements to the cooperative endeavor agreement hospital shall be considered a payment to the cooperative endeavor agreement hospital and therefore, shall reduce the amount payable directly or indirectly to the noncooperative endeavor agreement hospital. Proposed law provides the term "noncooperative endeavor agreement hospital" shall mean a nonrural acute care hospital pursuant to proposed law that has not entered into a cooperative endeavor agreement with the state for the provision of indigent inpatient acute care services. The term "cooperative endeavor agreement hospital" shall mean a nonrural acute care hospital or other organization pursuant to proposed law that has entered into a cooperative endeavor agreement with the state for the provision of indigent inpatient acute care services. Effective August 1, 2015. (Adds R.S. 46:2762) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Health and Welfare to the original bill 1. Provides for reimbursing uncompensated care costs for hospital inpatient acute care services for certain eligible hospitals. Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.