Authority: Title 32.1, Chapter 12, Code of Virginia.

A. In administering the Hospitalization and Outpatient Services for Indigent and Medically Indigent subprogram, the Department shall be guided by the following:

1. The allocation of state funds shall be based on the estimated total cost of required services in each county and city less the funds which shall be provided by the counties and cities. County and city funding shall be based upon a sliding scale not to exceed 25 percent of the total cost of required services.

2. Out of this subprogram, $113,550 the first year and $113,550 the second year from the general fund is reserved to support the state's share of expenses associated with inpatient services for migrants on the Eastern Shore. Reimbursement for costs shall be made in accordance with the requirements of the State/Local Hospitalization Program and will require a local match.

3. Any funds for the State/Local Hospitalization Program unexpended at the end of the fiscal year shall not revert to the general fund but shall remain in the Program, to be used as an offset to the calculated local share for the following year.

B. The Department of Medical Assistance Services shall delay implementation of the Diagnosis-Related Groups reimbursement methodology for inpatient hospital services provided under this program until the new Medicaid Management Information System is operational. Until that time, the daily inpatient hospital reimbursement rate shall be the same as the per diem rate established by the Department and in effect on July 1 of each year.

C. Included in the appropriation is $450,702 the first year and $456,702 the second year from the general fund to provide insurance payment assistance for HIV-infected persons in accordance with § 32.1-330.1, Code of Virginia, except that the eligibility threshold for assistance shall allow a maximum income of no more than 250 percent of the federal poverty threshold.