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2021 Special Session I

Budget Amendments - HB1800 (Conference Report)

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Provider Coverage Assessment (language only)

Item 3-5.15 #1c

Item 3-5.15 #1c

Adjustments and Modifications to Tax Collections
Provider Coverage Assessment

Language

Page 661, line 29, strike "1.08" and insert "1.02".



Explanation

(This amendment modifies the coverage assessment amount collected from hospitals to cover the state share of Medicaid expansion costs. Current law requires the collection of 108 percent of the state share of the full costs of expanded Medicaid coverage. The original intent was to ensure that collections were sufficient to cover the full cost of expansion and not rely on any general fund dollars to expand Medicaid. Rate assessment language has since been amended to allow the Department of Medical Assistance Services (DMAS) to adjust assessments with each quarter to account for differences between estimates and actual spending, however, the 108 percent collection requirement is applied to the estimate for the entire year and not just the remaining quarters. In addition, DMAS now has more experience with expansion and hospital overpayments in the first two years of the program have far exceeded the additional eight percent add-on. Reducing the add-on from eight to two percent would reduce the amount of overpayment made each year by the hospitals into the Health Care Coverage Assessment Fund.)