2021 Session

Budget Amendments - HB1800 (Member Request)

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Chief Patron: Hayes
Supplemental Payments for Lake Taylor (language only)

Item 313 #21h

Item 313 #21h

Health and Human Resources
Department of Medical Assistance Services


Page 364, after line 2, insert:

"9. The department shall amend the State plan for Medical Assistance to implement a supplemental inpatient payment for Lake Taylor Transitional Care Hospital based on the difference between Medicaid reimbursement and the inpatient Upper Payment Limit for non-state government owned hospitals. The department shall include in its contracts with managed care organizations a percentage increase for Lake Taylor Transitional Care Hospital consistent with the fee for service supplemental payment percentage increase. The department shall adjust capitation payments to Medicaid managed care organizations to fund this percentage increase. Both the contract changes and capitation rate adjustments shall be compliant with 42 C.F.R. 438.6(c)(1)(iii) and subject to CMS approval. Prior to submitting the State Plan Amendment or making the managed care contract changes, Lake Taylor Transitional Care Hospital shall enter into an agreement with the department to transfer the non-federal share for these payments. The department shall have the authority to implement these reimbursement changes consistent with the effective date(s) approved by the Centers for Medicare and Medicaid (CMS). No payments shall be made without CMS approval. The originating funding for this program will come entirely from Lake Taylor for Lake Taylor."


(This amendment adds language to allow Lake Taylor Transitional Care Hospital, a non-state government operated hospital located in Norfolk, Virginia, to provide the Commonwealth's share of funding through an intergovernmental transfer process to procure supplemental payments from the Medicaid program. This transfer plan is similar to the one being used by Chesapeake Regional Hospital.)