Substitute House Bill No. 5055
          Substitute House Bill No. 5055

              PUBLIC ACT NO. 98-131


AN  ACT  CONCERNING  MEDICAID  RATES  FOR HOSPITAL
INPATIENT SERVICES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  17b-239  of  the general
statutes is amended by adding  subsection  (g)  as
follows:
    (NEW)  (g)  Effective  October  1,  1998,  and
annually  thereafter,   the   commissioner   shall
establish  hospital  inpatient rates in accordance
with the method specified in  regulations  adopted
pursuant  to this section and applied for the rate
period beginning October 1, 1997, except that  the
commissioner  shall  apply a three per cent annual
adjustment  factor  to  the  target   amount   per
discharge in lieu of the annual adjustment factor,
if any, used to determine  rates  for  prospective
payment system-exempt hospitals under the Medicare
program.
    Sec.  2.  This  act  shall take effect July 1,
1998.

Approved May 27, 1998