Connecticut Seal

General Assembly

 

Raised Bill No. 5588

February Session, 2016

 

LCO No. 2580

 

*02580_______HS_*

Referred to Committee on HUMAN SERVICES

 

Introduced by:

 

(HS)

 

AN ACT CONCERNING THE TIMING OF PAYMENTS FROM SUPPLEMENTAL INPATIENT PAYMENT POOLS FOR SHORT-TERM GENERAL HOSPITALS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 17b-239e of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(b) The commissioner may establish a blended inpatient hospital case rate that includes services provided to all Medicaid recipients and may exclude certain diagnoses, as determined by the commissioner, if the establishment of such rates is needed to ensure that the conversion to an administrative services organization is cost neutral to hospitals in the aggregate and ensures patient access. Utilization may be a factor in determining cost neutrality. The Department of Social Services [may] shall establish, within available appropriations, (1) a supplemental inpatient payment pool for [certain] all hospitals, and (2) a supplemental inpatient payment pool for certain small independent hospitals. No payment shall be made from such supplemental inpatient payment pools to (A) any hospital which, on or after July 1, 2016, is within the class of hospitals licensed by the Department of Public Health as a children's general hospital, or (B) a short-term acute care hospital operated exclusively by the state other than a short-term acute care hospital operated by the state as a receiver pursuant to chapter 920. Payments made to hospitals from such supplemental inpatient payment pools shall be in addition to, and not a replacement for, payments made to hospitals based on the inpatient Medicaid rates established pursuant to section 17b-239.

(c) The commissioner shall make quarterly payments to all eligible hospitals from the supplemental inpatient payment pools not later than the last day of the second month of each quarter. Each quarterly payment to an eligible hospital from a supplemental inpatient payment pool shall equal one-quarter of that hospital's total allocated portion of the applicable supplemental inpatient payment pool for that year. Following issuance of payments to hospitals from a supplemental inpatient payment pool for any quarter, the commissioner shall seek federal matching funds under the medical assistance program for such quarterly payments. Interest earned on funds in the supplemental inpatient payment pools shall be credited to the pools. The funds in the supplemental inpatient payment pools shall not be diverted to any other state use.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2016

17b-239e(b)

Statement of Purpose:

To ensure timely and adequate payments to hospitals from supplemental inpatient payment pools and to require that the money in the payment pools not be used for any other purpose.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]