HLS 16RS-246 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 71
BY REPRESENTATIVE COX
PROCUREMENT: Provides for the extension of a Medicaid fiscal intermediary services
contract
1 AN ACT
2To amend and reenact R.S. 39:198(I)(introductory paragraph), (3), and (9), relative to
3 contracts for fiscal intermediary services in processing claims of healthcare
4 providers; to provide for extensions of the contract; and to provide for related
5 matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 39:198(I)(introductory paragraph), (3), and (9) are hereby amended
8and reenacted to read as follows:
9 ยง198. Types of contracts permitted
10 * * *
11 I. Contracts for fiscal intermediary services in processing claims of health-
12 care providers. State agencies may enter into contracts for fiscal intermediary
13 services in processing claims of healthcare providers. The term of such a contract
14 shall be one hundred twenty months. In the event special circumstances, as provided
15 in Paragraph (9) of this Subsection, necessitate, additional one-year extensions of the
16 contract in ninety-day increments up to three hundred sixty days may be granted. The
17 award process and final contract shall include the following:
18 * * *
19 (3) The one-hundred-twenty-month term of such contract shall be divided
20 into one period of between thirty-six months and sixty months, immediately followed
21 by successive twelve-month periods. The state shall have an option to renew such
22 contract for each of the twelve-month periods. If the state does not exercise its
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HB NO. 71
1 option to renew, the contract shall be terminated. In the event special circumstances
2 occur, as provided in Paragraph (9) of this Subsection, additional twelve-month
3 extensions of the contract in ninety-day increments up to three hundred sixty days
4 may be granted.
5 * * *
6 (9) In the event the Department of Health and Hospitals or the United States
7 Department of Health and Human Services, Centers for Medicare and Medicaid
8 Services proposes substantial changes in the operations of the Medicaid program that
9 would materially impact the services performed by the fiscal intermediary, the
10 Department of Health and Hospitals may, subject to the approval of the House and
11 Senate committees on health and welfare, approve additional extensions of the
12 contract in ninety-day increments up to three hundred sixty days until such time as
13 it is practical to prepare a solicitation for proposals describing the revised services
14 that would be performed by the fiscal intermediary. During the time frame covered
15 by any extension beyond the original one-hundred-twenty-month period, the fiscal
16 intermediary may be required to perform additional functions to assist in preparing
17 the Department of Health and Hospitals in the transition to the new program. Such
18 functions shall include existing fiscal intermediary services as well as efforts to
19 control fraud and abuse, program reports, beneficiary enrollment and program
20 information services, encounter data, and annual managed care negotiation data.
21 * * *
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)]
HB 71 Original 2016 Regular Session Cox
Abstract: Changes the allowable time period for extensions of a Medicaid fiscal
intermediary contract from 12-month to 90-day increments, up to 360 days.
Present law authorizes the state to enter into contracts for Medicaid fiscal intermediary
services.
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HB NO. 71
Present law further provides that the term of a contract for fiscal intermediary services shall
be 120 months. Further, the contract may be extended under certain circumstances for
additional 12-month periods.
Proposed law changes the allowable time period for extensions from 12-month to 90-day
increments, up to 360 days.
(Amends R.S. 39:198(I)(intro. para.), (3), and (9))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.