PRINTER'S NO. 1257 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.1128 Session of 2025 INTRODUCED BY STRUZZI, VENKAT, M. BROWN, CAUSER, GREEN, HOHENSTEIN, KENYATTA, KHAN AND SANCHEZ, APRIL 4, 2025 REFERRED TO COMMITTEE ON HUMAN SERVICES, APRIL 4, 2025 AN ACT Establishing the Medicaid Care Transition Program; and imposing duties on the Department of Human Services. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Medicaid Care Transition Program Act. Section 2. Legislative findings. The General Assembly finds and declares as follows: (1) Hospital emergency departments are one of the main entry points to obtaining critical health care services when patients are in crisis. (2) While emergency departments effectively assess and triage patients in need of behavioral health care or other long-term care services, hospitals often face long delays in dispositioning patients to appropriate inpatient and outpatient treatment settings, causing patients to wait in the emergency department for extended periods of time. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (3) Delayed disposition of patients impacts both patients and delivery system outcomes, increasing psychological stress on patients and their families, delaying treatment that could mitigate the need for inpatient stays, consuming scarce emergency department resources, worsening emergency department crowding and delaying treatment for other patients. Section 3. Purpose. The purpose of the Medicaid Care Transition Program is to establish clear steps and responsibility for escalating cases, where placement of individuals enrolled in Medicaid has not been achieved in a reasonable period of time, to senior clinical leadership within responsible entities and senior officials with the department. Section 4. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Department." The Department of Human Services of the Commonwealth. "Hospital." The following: (1) A "hospital" as defined in 28 Pa. Code ยง 101.4 (relating to definitions) located inside or outside of this Commonwealth. (2) A behavioral health crisis center. "Patient." An individual, enrolled in the Medicaid program, being served in a hospital emergency department , inpatient unit or crisis response center who has been identified as requiring postacute treatment. "Responsible entity." A county Medicaid managed care plan or 20250HB1128PN1257 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 other organization contractually or statutorily required to ensure access to medically necessary postacute care for Medicaid enrollees. Section 5. Medicaid Care Transition Program. (a) Establishment.--The Medicaid Care Transition Program is established within the department for the purposes under this section. (b) Escalation policy.--Within 180 days of the effective date of this subsection, the department shall establish policies and procedures that require responsible entities to establish care transition units responsible for working directly with hospitals to identify appropriate postacute placements for individuals awaiting transfer. The policies and procedures shall require the responsible entity to, at a minimum: (1) Ensure that hospitals have appropriate contact information for the care transition units of responsible entities. (2) Establish a formal request for assistance mechanism that triggers a process to facilitate the admission of the patient to an appropriate setting. (3) Require the responsible entity to mitigate any authorization issues that are presenting barriers to a successful placement. (4) Require the responsible entity, if a placement in an in-network provider is not anticipated to be available within 24 hours from the request for assistance, to seek placement in appropriate out-of-network facilities, taking into account services required by the individual, geography and other relevant factors. (5) Remain actively engaged and seek to obtain admission 20250HB1128PN1257 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 of the individual until a placement has been secured. (6) Once a responsible entity has exhausted its network and appropriate out-of-network options, or after another 48 hours has elapsed from a request for assistance, notify the department of the failure to find the necessary placement. (c) Department responsibilities.--The department shall, after being notified of the failure to find medically appropriate placement under subsection (b)(6): (1) Establish an internal team to work with the responsible entity to determine next steps to address barriers to a postacute placement in a timely manner. (2) If a barrier is clinically based, convene conversations with clinical leaders of the responsible entity to understand and resolve these barriers. (3) If a barrier to admission requires other State agencies to resolve the issue, convene a conference call with the appropriate State agency representatives, providers, responsible entities and other payors as well as others needed to resolve the issues. (4) If a barrier concerns payment, facilitate a discussion with the responsible entity to address network adequacy and payment issues with the responsible entity and consult with the Insurance Department, as may be appropriate, to address network adequacy issues . (5) Collect data about the interventions under this subsection and review the data as part of relevant licensing surveys. (6) Require corrective action plans from responsible entities, as appropriate. Section 6. Report. 20250HB1128PN1257 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 No later than one year after the effective date of this section, and on an annual basis thereafter, the department shall prepare and submit a report to the chairperson and minority chairperson of the Health and Human Services Committee of the Senate, the chairperson and minority chairperson of the Health Committee of the House of Representatives and the chairperson and minority chairperson of the Human Services Committee of the House of Representatives. The report shall include the following: (1) A general summary describing the establishment of the escalation policy and the department's compliance with the requirements of this act. (2) The number of instances that responsible entities have notified the department of the responsible entities' inability to find a necessary placement under section 5(b) (6), sorted by the name of the responsible entity and region of this Commonwealth, among other relevant factors. (3) A summary of the department's activities under section 5(c) to work internally to find appropriate placements for individuals requiring postacute placements. (4) Information on the diagnosis and length of the hospital stay for de-identified individuals, prior to discharge, referred to the department under this act. (5) Information on corrective action taken by the department to address delays in finding postacute placements for individuals awaiting transfer. Section 7. Effective date. This act shall take effect in 60 days. 20250HB1128PN1257 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28