2002 Session

Budget Amendments - SB29 (Member Request)

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Chief Patron: Governor Warner
Long-term Plan for Medicaid Cost Reductions (language only)

Item 319 #1g

Item 319 #1g

Health And Human Resources
Medical Assistance Services, Department of

Page 293, after line 32, insert:
"VV. The Department of Medical Assistance Services shall generate general fund savings of $11,100,000 in fiscal year 2003 and $11,500,000 in fiscal year 2004 through revisions to its current reimbursement methodologies for managed care organizations, hospital, nursing home and pharmacy services.  The strategies formulated to generate these savings shall be established as a part of a long-term plan to reduce the costs of these services.  The Department shall involve the affected provider communities in determining the actions to be taken in generating such savings.  The Department is authorized to amend the State Plan for Medical Assistance Services, and promulgate emergency regulations to implement any actions necessary to achieve the savings.  The state plan amendments and the emergency regulations shall become effective no later than 280 days from the enactment of this act."

(This language is necessary to give the agency authority to revise the State Plan regulations to implement the agency's proposed cost savings initiative.)