2008 Session

Budget Amendments - SB30 (Committee Approved)

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Reduce Inflation for Inpatient Hospital Services

Item 306 #9s

Item 306 #9s

First Year - FY2009 Second Year - FY2010
Health And Human Resources
Medical Assistance Services, Department of FY2009 ($14,233,333) FY2010 ($15,400,000) GF
FY2009 ($14,233,333) FY2010 ($15,400,000) NGF

Page 276, line 1, strike "$5,521,541,169" and insert "$5,493,074,503".
Page 276, line 1, strike "$5,818,036,403" and insert "$5,787,236,403".
Page 289, after line 18, insert:
"RR.  The Department of Medical Assistance Services shall amend the State Plan to reduce the rate of inflation included in the 2007 Medicaid Forecast for inpatient hospital services to two percent in each year of the biennium.  Effective July 1, 2008, and ending after June 30, 2010, each hospital's operating rate per case and operating rates per day shall be set equal to 97.2 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 not replace through other payment mechanisms the losses of Type One hospitals from this reimbursement change.  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 the appropriation by $14.2 million the first year and $15.4 million the second year from the general fund and an equal amount of federal Medicaid matching funds by reducing the rate increase included within the 2007 Medicaid Forecast to two percent each year. The forecast assumed an increase of 4.8 percent each year.)