2018 Session

Budget Amendments - SB30 (Member Request)

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Chief Patron: Howell
Clarify Inflation Calculation for Hospital Rebasing

Item 307 #5s

Item 307 #5s

First Year - FY2019 Second Year - FY2020
Health and Human Resources
Department of Medical Assistance Services FY2019 $0 FY2020 $23,240,434 GF
FY2019 $0 FY2020 $23,240,434 NGF

Page 278, line 50, strike "$284,228,621" and insert "$330,709,489".

Page 279, line 13, after "included in the forecast", insert "and for such rebasing calculations the inflation updates applied between the base year and the applicable rate year shall be based on regulation-directed third party published inflation rates not affected by any prior or current budgetary action to adjust or defer updates to said rates".


(This amendment clarifies how inflation updates are applied during rebasing calculations to ensure that prior-year, temporary modifications or limitations on inflation updates imposed for providers in state budgets are not perpetuated into the future when rebasing calculations are made by the department. This clarification results in a funding need of $23.2 million general fund the second year since the introduced budget does not fully factor in all inflation for hospital services, which will be rebased in fiscal year 2020.)