To extend enhanced Medicaid benefits to eligible hospitals
Impact
The bill delineates that the total sum of all enhanced payments shall not exceed $35 million in any fiscal year. This financial support is expected to alleviate some of the financial burdens faced by hospitals that predominantly serve low-income patients and depend heavily on Medicaid funding. It is likely to provide a more stable revenue stream for these hospitals, enabling them to continue providing essential services to the communities they serve.
Summary
House Bill H1198 aims to extend enhanced Medicaid benefits to eligible hospitals, specifically targeting non-profit or municipal acute care hospitals that meet specific criteria. The bill proposes that the secretary of health and human services will direct monthly payments equivalent to 5% of an eligible hospital's average monthly Medicaid payments. These payments are designated for both inpatient and outpatient acute hospital services and are intended to support hospitals that predominantly serve public payers.
Contention
Notably, the legislation outlines several eligibility criteria for hospitals seeking these enhanced payments. Hospitals must have a statewide relative price below 0.90 and must serve a public payer mix of at least 60%. Additionally, the bill includes provisions to ensure that payments do not offset existing Medicaid payments, raising questions about its impact on budgeting and resource allocation within the state's health care system. Opponents might argue that the limitations on eligibility could leave out some critical care providers, impacting patient access to services in their areas.