HB 955 -- MEDICAID HOSPITAL REIMBURSEMENT

SPONSOR:  Green (73)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Social Services, Medicaid and the Elderly by a vote of 12 to
0.

Under this bill, beginning July 1, 2002, the federal
reimbursement allowance for hospitals will terminate 180 days
after the end of any state fiscal year when the federal
reimbursement allowance assessment is more than 85% of the total
of aggregate Medicaid direct payments.  Uninsured add-on
payments and enhanced graduate medical education payments must
be adjusted to comply with the 85% limit unless they occur
within the 180-day period, but enhanced graduate medical
education payments are not included in the 85% limit if the
state's share of the payments come from a source other than the
federal reimbursement allowance.

Direct Medicaid payments, uninsured add-on payments, and
enhanced graduate medical education payments include those
currently defined by regulation, as well as payments that
replace, supplant, or supplement them.  Payments and assessments
of hospitals with an unsponsored care ratio of 65% that are
licensed to operate less than 50 inpatient beds for which the
state's share of payments are made by certification are excluded.

The bill also allows alternative reimbursement for outpatient
services to include enhanced payments or grants for hospital
clinics that serve low-income uninsured patients.

The bill extends the sunset date for the federal reimbursement
allowance from September 30, 2001, to September 30, 2004, unless
terminated sooner under the provisions of the bill.

FISCAL NOTE:  Estimated Net Effect on Federal Reimbursement
Allowance Fund of $0 in FY 2002, FY 2003, and FY 2004.

PROPONENTS:  Supporters say that the funds generated from the
federal reimbursement assessment are used to obtain more money
in matching funds from the federal government for the state
Medicaid program.  These funds are used for the hospital program
as well as other providers and are a big part of the state
Medicaid budget.

Testifying for the bill were Representative Ladd Baker; Division
of Medical Services; and Missouri Hospital Association.

OPPONENTS:  There was no opposition voiced to the committee.

Amy Woods, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:46 am