2008 Session

Budget Amendments - HB30 (Floor Approved)

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Medicaid Inflation Adjustment for Hospital Reimbursements

Item 306 #10h

Item 306 #10h

First Year - FY2009 Second Year - FY2010
Health And Human Resources
Medical Assistance Services, Department of FY2009 ($18,094,744) FY2010 ($19,606,577) GF
FY2009 ($18,094,744) FY2010 ($19,606,577) NGF

Page 276, line 1, strike "$5,521,541,169" and insert "$5,485,351,681".
Page 276, line 1, strike "$5,818,036,403" and insert "$5,778,823,249".
Page 289, after line 18, insert:"RR.  The Department of Medical Assistance Services shall amend the State Plan to accomplish the following: effective July 1, 2008, each hospital's operating rate per case and rehab operating rates per day shall be set equal to 95.4 percent of the rates which otherwise would have been set.  Managed care capitation rates shall reflect this adjustment to fee-for-service rates.  The Department shall have the authority to implement these reimbursement changes effective July 1, 2008, and prior to the completion of any regulatory process undertaken in order to effect such change."

(This amendment reduces funding in the Department of Medical Assistance Services for inflation applied to hospital operating rates per case and rehab operating rates per day. The introduced budget contained an inflation factor of 4.6 percent for hospital reimbursement rates each year in the 2008-10 biennium. This eliminates the inflation adjustment for most hospitals with the exception of the state's teaching hospitals and psychiatric inpatient services. Reimbursements for most Medicaid services are not automatically inflated each year. Hospital payment rates were rebased to reflect more current costs as of July 1, 2007.)