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6
7 LONG TITLE
8 General Description:
9 This bill creates a new waiver program to provide enhanced benefits for certain
10 individuals in the Medicaid program, and provides funding for the enhancement waiver
11 program through an existing hospital assessment and a portion of the growth in alcohol
12 and tobacco tax revenues.
13 Highlighted Provisions:
14 This bill:
15 ▸ directs the Department of Health to apply for a new waiver or an amendment to an
16 existing waiver to implement the Primary Care Network enhancement waiver
17 program described in this bill; and
18 ▸ amends the Inpatient Hospital Assessment Act to pay for the cost of the
19 enhancement waiver program.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides coordination clauses.
24 Utah Code Sections Affected:
25 AMENDS:
26 26-18-411, as enacted by Laws of Utah 2016, Chapter 279
27 26-36b-102, as enacted by Laws of Utah 2016, Chapter 279
28 26-36b-103, as enacted by Laws of Utah 2016, Chapter 279
29 26-36b-201, as enacted by Laws of Utah 2016, Chapter 279
30 26-36b-202, as enacted by Laws of Utah 2016, Chapter 279
31 26-36b-203, as enacted by Laws of Utah 2016, Chapter 279
32 26-36b-204, as enacted by Laws of Utah 2016, Chapter 279
33 26-36b-205, as enacted by Laws of Utah 2016, Chapter 279
34 26-36b-206, as enacted by Laws of Utah 2016, Chapter 279
35 26-36b-207, as enacted by Laws of Utah 2016, Chapter 279
36 26-36b-208, as enacted by Laws of Utah 2016, Chapter 279
37 26-36b-209, as enacted by Laws of Utah 2016, Chapter 279
38 26-36b-210, as enacted by Laws of Utah 2016, Chapter 279
39 26-36b-211, as enacted by Laws of Utah 2016, Chapter 279
40 63I-1-226, as last amended by Laws of Utah 2017, Chapters 177 and 443
41 ENACTS:
42 26-18-415, Utah Code Annotated 1953
43 Utah Code Sections Affected by Coordination Clause:
44 26-18-415, Utah Code Annotated 1953
45 26-36b-103, as enacted by Laws of Utah 2016, Chapter 279
46 26-36b-201, as enacted by Laws of Utah 2016, Chapter 279
47 26-36b-204, as enacted by Laws of Utah 2016, Chapter 279
48 26-36b-206, as enacted by Laws of Utah 2016, Chapter 279
49 26-36b-208, as enacted by Laws of Utah 2016, Chapter 279
50 26-36b-209, as enacted by Laws of Utah 2016, Chapter 279
51 26-36b-211, as enacted by Laws of Utah 2016, Chapter 279
52
53 Be it enacted by the Legislature of the state of Utah:
54 Section 1. Section 26-18-411 is amended to read:
55 26-18-411. Health coverage improvement program -- Eligibility -- Annual report
56 -- Expansion of eligibility for adults with dependent children.
57 (1) For purposes of this section:
58 (a) "Adult in the expansion population" means an individual who:
59 (i) is described in 42 U.S.C. Sec. 1396a(10)(A)(i)(VIII); and
60 (ii) is not otherwise eligible for Medicaid as a mandatory categorically needy
61 individual.
62 (b) "CMS" means the Centers for Medicare and Medicaid Services within the United
63 States Department of Health and Human Services.
64 (c) "Enhancement waiver program" means the Primary Care Network enhancement
65 waiver program described in Section 26-18-415.
66 [
67 Secretary of the United States Department of Health and Human Services under 42 U.S.C. Sec.
68 9909(2).
69 (e) "Health coverage improvement program" means the health coverage improvement
70 program described in Subsections (3) through (10).
71 [
72 (i) means an individual who is chronically homeless, as determined by the department;
73 and
74 (ii) includes someone who was chronically homeless and is currently living in
75 supported housing for the chronically homeless.
76 [
77 (i) established by the state in an appropriations act adopted pursuant to Title 63J,
78 Chapter 1, Budgetary Procedures Act; and
79 (ii) under which an individual may qualify for Medicaid coverage in accordance with
80 this section.
81 (2) Beginning July 1, 2016, the department shall amend the state Medicaid plan to
82 allow temporary residential treatment for substance abuse, for the traditional Medicaid
83 population, in a short term, non-institutional, 24-hour facility, without a bed capacity limit that
84 provides rehabilitation services that are medically necessary and in accordance with an
85 individualized treatment plan, as approved by CMS and as long as the county makes the
86 required match under Section 17-43-201.
87 (3) Beginning July 1, 2016, the department shall amend the state Medicaid plan to
88 increase the income eligibility ceiling to a percentage of the federal poverty level designated by
89 the department, based on appropriations for the program, for an individual with a dependent
90 child.
91 [
92 (4) Before July 1, 2016, the division shall submit to CMS a request for waivers, or an
93 amendment of existing waivers, from federal statutory and regulatory law necessary for the
94 state to implement the health coverage improvement program in the Medicaid program in
95 accordance with this section.
96 [
97 meets the income eligibility and other criteria established under Subsection [
98 [
99 coverage:
100 (i) through[
101 Medicaid accountable care organizations or the state's Medicaid accountable care organization
102 delivery system, where implemented; [
103 [
104 through the counties in accordance with Sections 17-43-201 and 17-43-301;
105 [
106 Medicaid accountable care organizations in select geographic areas of the state that choose an
107 integrated model; and
108 [
109 term, non-institutional, 24-hour facility, without a bed capacity limit, as approved by CMS, that
110 provides rehabilitation services that are medically necessary and in accordance with an
111 individualized treatment plan.
112 [
113 care under Subsection [
114 patients, and coordination of services.
115 [
116 under Subsection [
117 (i) at the time of enrollment, the individual's annual income is below the income
118 eligibility ceiling established by the state under Subsection (1)[
119 (ii) the individual meets the eligibility criteria established by the department under
120 Subsection [
121 (b) Based on available funding and approval from CMS, the department shall select the
122 criteria for an individual to qualify for the Medicaid program under Subsection [
123 based on the following priority:
124 (i) a chronically homeless individual;
125 (ii) if funding is available, an individual:
126 (A) involved in the justice system through probation, parole, or court ordered
127 treatment; and
128 (B) in need of substance abuse treatment or mental health treatment, as determined by
129 the department; or
130 (iii) if funding is available, an individual in need of substance abuse treatment or
131 mental health treatment, as determined by the department.
132 (c) An individual who qualifies for Medicaid coverage under Subsections [
133 and (b) may remain on the Medicaid program for a 12-month certification period as defined by
134 the department. Eligibility changes made by the department under Subsection (1)[
135 [
136 [
137 other eligibility criteria under Subsection [
138 health coverage improvement program, projected enrollment, costs to the state, and the state
139 budget.
140 [
141 (8) Before September 30 of each year [
142 [
143 Executive Appropriations Committee:
144 (a) the number of individuals who enrolled in Medicaid under Subsection [
145 (b) the state cost of providing Medicaid to individuals enrolled under Subsection [
146 (6); and
147 (c) recommendations for adjusting the income eligibility ceiling under Subsection [
148 (7), and other eligibility criteria under Subsection [
149 [
150
151 [
152
153
154 [
155
156
157
158
159 [
160 when implemented, shall coordinate with a state prison or county jail to expedite Medicaid
161 enrollment for an individual who is released from custody and was eligible for or enrolled in
162 Medicaid before incarceration.
163 [
164 to provide matching funds to the state for the cost of providing Medicaid services to newly
165 enrolled individuals who qualify for Medicaid coverage under the health coverage
166 improvement program under Subsection [
167 [
168 [
169
170 [
171
172 [
173
174 [
175
176 (11) If the enhancement waiver program is implemented, the department:
177 (a) may not accept any new enrollees into the health coverage improvement program
178 after the day on which the enhancement waiver program is implemented;
179 (b) shall transition all individuals who are enrolled in the health coverage improvement
180 program into the enhancement waiver program;
181 (c) shall suspend the health coverage improvement program within one year after the
182 day on which the enhancement waiver program is implemented;
183 (d) shall, within one year after the day on which the enhancement waiver program is
184 implemented, use all appropriations for the health coverage improvement program to
185 implement the enhancement waiver program; and
186 (e) shall work with CMS to maintain any waiver for the health coverage improvement
187 program while the health coverage improvement program is suspended under Subsection
188 (11)(c).
189 (12) If, after the enhancement waiver program takes effect, the enhancement waiver
190 program is repealed or suspended by either the state or federal government, the department
191 shall reinstate the health coverage improvement program and continue to accept new enrollees
192 into the health coverage improvement program in accordance with the provisions of this
193 section.
194 Section 2. Section 26-18-415 is enacted to read:
195 26-18-415. Primary Care Network enhancement waiver program.
196 (1) As used in this section:
197 (a) "CMS" means the Centers for Medicare and Medicaid Services within the United
198 States Department of Health and Human Services.
199 (b) "Enhancement waiver program" means the Primary Care Network enhancement
200 waiver program described in this section.
201 (c) "Federal poverty level" means the poverty guidelines established by the secretary of
202 the United States Department of Health and Human Services under 42 U.S.C. Sec. 9902(2).
203 (d) "Health coverage improvement program" means the same as that term is defined in
204 Section 26-18-411.
205 (e) "Income eligibility ceiling" means the percentage of federal poverty level:
206 (i) established by the Legislature in an appropriations act adopted pursuant to Title 63J,
207 Chapter 1, Budgetary Procedures Act; and
208 (ii) under which an individual may qualify for coverage in the enhancement waiver
209 program in accordance with this section.
210 (f) "Optional population" means the optional expansion population under PPACA if
211 the expansion provides coverage for individuals at or above 95% of the federal poverty level.
212 (g) "PPACA" means the same as that term is defined in Section 31A-1-301.
213 (h) "Primary Care Network" means the state Primary Care Network program created by
214 the Medicaid primary care network demonstration waiver obtained under Section 26-18-3.
215 (2) The department shall continue to implement the Primary Care Network program for
216 qualified individuals under the Primary Care Network program.
217 (3) Before July 1, 2018, the division shall apply for a Medicaid waiver or a state plan
218 amendment with CMS to implement, within the state Medicaid program, the enhancement
219 waiver program described in this section.
220 (4) An individual who is eligible for the enhancement waiver program may receive the
221 following benefits under the enhancement waiver program:
222 (a) the benefits offered under the Primary Care Network program;
223 (b) diagnostic testing and procedures;
224 (c) medical specialty care;
225 (d) inpatient hospital services;
226 (e) outpatient hospital services;
227 (f) outpatient behavioral health care, including outpatient substance abuse care; and
228 (g) for an individual who qualifies for the health coverage improvement program, as
229 approved by CMS, temporary residential treatment for substance abuse in a short term,
230 non-institutional, 24-hour facility, without a bed capacity limit, that provides rehabilitation
231 services that are medically necessary and in accordance with an individualized treatment plan.
232 (5) An individual is eligible for the enhancement waiver program if, at the time of
233 enrollment:
234 (a) the individual is qualified to enroll in the Primary Care Network or the health
235 coverage improvement program;
236 (b) the individual's annual income is below the income eligibility ceiling established by
237 the Legislature under Subsection (1)(e); and
238 (c) the individual meets the eligibility criteria established by the department under
239 Subsection (6).
240 (6) (a) Based on available funding and approval from CMS and subject to Subsection
241 (6)(d), the department shall determine the criteria for an individual to qualify for the
242 enhancement waiver program, based on the following priority:
243 (i) adults in the expansion population, as defined in Section 26-18-411, who qualify for
244 the health coverage improvement program;
245 (ii) adults with dependent children who qualify for the health coverage improvement
246 program under Subsection 26-18-411(3) ;
247 (iii) adults with dependent children who do not qualify for the health coverage
248 improvement program; and
249 (iv) if funding is available, adults without dependent children.
250 (b) The number of individuals enrolled in the enhancement waiver program may not
251 exceed 105% of the number of individuals who were enrolled in the Primary Care Network on
252 December 31, 2017.
253 (c) The department may only use appropriations from the Medicaid Expansion Fund
254 created in Section 26-36b-208 to fund the state portion of the enhancement waiver program.
255 (d) The money deposited into the Medicaid Expansion Fund under Subsections
256 26-36b-208(g) and (h) may only be used to pay the cost of enrolling individuals who qualify for
257 the enhancement waiver program under Subsections (6)(a)(iii) and (iv).
258 (7) The department may request a modification of the income eligibility ceiling and the
259 eligibility criteria under Subsection (6) from CMS each fiscal year based on enrollment in the
260 enhancement waiver program, projected enrollment in the enhancement waiver program, costs
261 to the state, and the state budget.
262 (8) The department may implement the enhancement waiver program by contracting
263 with Medicaid accountable care organizations to administer the enhancement waiver program.
264 (9) In accordance with Subsections 26-18-411(11) and (12), the department may use
265 funds that have been appropriated for the health coverage improvement program to implement
266 the enhancement waiver program.
267 (10) If the department expands the state Medicaid program to the optional population,
268 the department:
269 (a) except as provided in Subsection (11), may not accept any new enrollees into the
270 enhancement waiver program after the day on which the expansion to the optional population
271 is effective;
272 (b) shall suspend the enhancement waiver program within one year after the day on
273 which the expansion to the optional population is effective; and
274 (c) shall work with CMS to maintain the waiver for the enhancement waiver program
275 submitted under Subsection (3) while the enhancement waiver program is suspended under
276 Subsection (10)(b).
277 (11) If, after the expansion to the optional population described in Subsection (10)
278 takes effect, the expansion to the optional population is repealed by either the state or the
279 federal government, the department shall reinstate the enhancement waiver program and
280 continue to accept new enrollees into the enhancement waiver program in accordance with the
281 provisions of this section.
282 Section 3. Section 26-36b-102 is amended to read:
283 26-36b-102. Application.
284 (1) Other than for the imposition of the assessment described in this chapter, nothing in
285 this chapter shall affect the nonprofit or tax exempt status of any nonprofit charitable, religious,
286 or educational health care provider under any:
287 [
288 [
289 [
290 [
291 [
292 [
293 imposed, by the state or any political subdivision[
294
295 (2) All assessments paid under this chapter may be included as an allowable cost of a
296 hospital for purposes of any applicable Medicaid reimbursement formula.
297 (3) This chapter does not authorize a political subdivision of the state to:
298 (a) license a hospital for revenue;
299 (b) impose a tax or assessment upon a hospital; or
300 (c) impose a tax or assessment measured by the income or earnings of a hospital.
301 Section 4. Section 26-36b-103 is amended to read:
302 26-36b-103. Definitions.
303 As used in this chapter:
304 (1) "Assessment" means the inpatient hospital assessment established by this chapter.
305 (2) "CMS" means the [
306 Medicare and Medicaid Services within the United States Department of Health and Human
307 Services.
308 (3) "Discharges" means the number of total hospital discharges reported on:
309 (a) Worksheet S-3 Part I, column 15, lines 14, 16, and 17 of the 2552-10 Medicare cost
310 report for the applicable assessment year; or
311 (b) a similar report adopted by the department by administrative rule, if the report
312 under Subsection (3)(a) is no longer available.
313 (4) "Division" means the Division of Health Care Financing within the department.
314 (5) "Enhancement waiver program" means the program established by the Primary
315 Care Network enhancement waiver program described in Section 26-18-415.
316 (6) "Health coverage improvement program" means the health coverage improvement
317 program described in Section 26-18-411.
318 (7) "Hospital share" means the hospital share described in Section 26-36b-203.
319 (8) "Medicaid accountable care organization" means a managed care organization, as
320 defined in 42 C.F.R. Sec. 438, that contracts with the department under the provisions of
321 Section 26-18-405.
322 [
323 filing of hospitals.
324 [
325 non-state government entity[
326 (b) "Non-state government hospital" does not include:
327 (i) the Utah State Hospital; or
328 (ii) a hospital owned by the federal government, including the Veterans Administration
329 Hospital.
330 [
331 (i) a [
332 Section 26-21-2, that is privately owned and operating in the state; and
333 (ii) a privately owned specialty hospital operating in the state, [
334 including a privately owned hospital whose inpatient admissions are predominantly for:
335 (A) rehabilitation;
336 (B) psychiatric care;
337 (C) chemical dependency services; or
338 (D) long-term acute care services[
339 (b) "Private hospital" does not include a facility for residential [
340 [
341 [
342 an institution of higher education.
343 (13) "Upper payment limit gap" means the difference between the private hospital
344 outpatient upper payment limit and the private hospital Medicaid outpatient payments, as
345 determined in accordance with 42 C.F.R. Sec. 447.321.
346 Section 5. Section 26-36b-201 is amended to read:
347 26-36b-201. Assessment.
348 (1) An assessment is imposed on each private hospital:
349 (a) beginning upon the later of CMS approval of:
350 (i) the health coverage improvement program waiver under Section 26-18-411; and
351 (ii) the assessment under this chapter;
352 (b) in the amount designated in Sections 26-36b-204 and 26-36b-205; and
353 (c) in accordance with Section 26-36b-202.
354 (2) Subject to Section 26-36b-203, the assessment imposed by this chapter is due and
355 payable on a quarterly basis, after payment of the outpatient upper payment limit supplemental
356 payments under Section 26-36b-210 have been paid.
357 (3) The first quarterly payment [
358 the earlier of the effective [
359 (a) the health coverage improvement program [
360 (b) the enhancement waiver program.
361 Section 6. Section 26-36b-202 is amended to read:
362 26-36b-202. Collection of assessment -- Deposit of revenue -- Rulemaking.
363 (1) The collecting agent for the assessment imposed under Section 26-36b-201 is the
364 department.
365 (2) The department is vested with the administration and enforcement of this chapter,
366 [
367 Chapter 3, Utah Administrative Rulemaking Act, necessary to:
368 [
369 (a) collect the assessment, intergovernmental transfers, and penalties imposed under
370 this chapter;
371 (b) audit records of a facility that:
372 (i) is subject to the assessment imposed by this chapter; and
373 (ii) does not file a Medicare cost report; and
374 (c) select a report similar to the Medicare cost report if Medicare no longer uses a
375 Medicare cost report.
376 (2) The department shall:
377 (a) administer the assessment in this [
378 assessment in Chapter 36a, Hospital Provider Assessment Act; and
379 (b) deposit assessments collected under this chapter into the Medicaid Expansion Fund
380 created by Section 26-36b-208.
381 Section 7. Section 26-36b-203 is amended to read:
382 26-36b-203. Quarterly notice.
383 (1) Quarterly assessments imposed by this chapter shall be paid to the division within
384 15 business days after the original invoice date that appears on the invoice issued by the
385 division.
386 (2) The department may, by rule, extend the time for paying the assessment.
387 Section 8. Section 26-36b-204 is amended to read:
388 26-36b-204. Hospital financing of health coverage improvement program
389 Medicaid waiver -- Hospital share.
390 [
391 (1) The hospital share is:
392 (a) 45% of the state's net cost of[
393 [
394 with dependent children up to the federal poverty level designated under Section 26-18-411;
395 [
396 [
397 (b) 45% of the state's net cost of the enhancement waiver program; and
398 (c) 45% of the state's net cost of the upper payment limit gap.
399 [
400 (2) (a) The hospital share is capped at no more than $13,600,000 annually, consisting
401 of:
402 (i) an $11,900,000 cap [
403 Subsections (1)(a)[
404 (ii) a $1,700,000 cap for the program specified in Subsection [
405 [
406 (b) The department shall prorate the cap described in Subsection (2)(a) in any year in
407 which the programs specified in [
408 full fiscal year[
409 [
410 expansion described in Section 26-18-411[
411 26-18-415, the hospital share is capped at 33% of the state's share of the cost of the expansion
412 or enhancement that is in addition to the [
413 26-18-415.
414 [
415 (3) Private hospitals shall be assessed under this chapter for:
416 (a) 69% of the portion of the hospital share specified in Subsections (1)(a)[
417 and (b); and
418 (b) 100% of the portion of the hospital share specified in Subsection (1)[
419 [
420 October 15 of each subsequent year [
421 cost of the programs described in Subsections (1)(a)[
422 that year .
423 (b) If the assessment collected in the previous fiscal year is above or below the [
424
425 hospitals for the previous fiscal year, the underpayment or overpayment of the assessment by
426 the private hospitals shall be applied to the fiscal year in which the report [
427 [
428 each year, report to the department the following data from the prior state fiscal year for each
429 private hospital, state teaching hospital, and non-state government hospital provider that the
430 Medicaid accountable care organization contracts with:
431 (a) for the traditional Medicaid population[
432
433 (i) hospital inpatient payments;
434 (ii) hospital inpatient discharges;
435 (iii) hospital inpatient days; and
436 (iv) hospital outpatient payments; and
437 [
438
439 (b) if the Medicaid accountable care organization enrolls any individuals in the health
440 coverage improvement program or the enhancement waiver program, for the population newly
441 eligible for either program:
442 (i) hospital inpatient payments;
443 (ii) hospital inpatient discharges;
444 (iii) hospital inpatient days; and
445 (iv) hospital outpatient payments.
446 (6) The department shall, by rule made in accordance with Title 63G, Chapter 3, Utah
447 Administrative Rulemaking Act, provide details surrounding specific content and format for
448 the reporting by the Medicaid accountable care organization.
449 Section 9. Section 26-36b-205 is amended to read:
450 26-36b-205. Calculation of assessment.
451 (1) (a) Except as provided in Subsection (1)(b), an annual assessment is payable on a
452 quarterly basis for each private hospital in an amount calculated by the division at a uniform
453 assessment rate for each hospital discharge, in accordance with this section.
454 (b) A private teaching hospital with more than 425 beds and 60 residents shall pay an
455 assessment rate [
456 (c) The division shall calculate the uniform assessment rate [
457
458
459 by dividing the hospital share for assessed private hospitals, described in Subsection
460 26-36b-204(1), by the sum of:
461 (i) the total number of discharges for assessed private hospitals that are not a private
462 teaching hospital; and
463 (ii) 2.5 times the number of discharges for a private teaching hospital, described in
464 Subsection (1)(b).
465 (d) The division may, by rule made in accordance with Title 63G, Chapter 3, Utah
466 Administrative Rulemaking Act, adjust the formula described in Subsection (1)(c) to address
467 unforeseen circumstances in the administration of the assessment under this chapter.
468 [
469 uniformly to all assessed private hospitals.
470 [
471
472
473
474 (2) Except as provided in Subsection (3), for each state fiscal year, the division shall
475 determine a hospital's discharges as follows:
476 [
477 year ending between July 1, 2013, and June 30, 2014; and
478 [
479 hospital's fiscal year that ended in the state fiscal year two years before the assessment fiscal
480 year.
481 [
482 [
483 System file:
484 (i) the hospital shall submit to the division a copy of the hospital's Medicare cost report
485 applicable to the assessment year; and
486 (ii) the division shall determine the hospital's discharges.
487 [
488 a Medicare cost report:
489 (i) the hospital shall submit to the division the hospital's applicable fiscal year
490 discharges with supporting documentation;
491 (ii) the division shall determine the hospital's discharges from the information
492 submitted under Subsection [
493 (iii) [
494 hospital's records and a penalty equal to 5% of the calculated assessment.
495 [
496 organization that owns more than one hospital in the state:
497 (a) the assessment for each hospital shall be separately calculated by the department;
498 and
499 (b) each separate hospital shall pay the assessment imposed by this chapter.
500 [
501 (5) If multiple hospitals use the same Medicaid provider number:
502 (a) the department shall calculate the assessment in the aggregate for the hospitals
503 using the same Medicaid provider number; and
504 (b) the hospitals may pay the assessment in the aggregate.
505 Section 10. Section 26-36b-206 is amended to read:
506 26-36b-206. State teaching hospital and non-state government hospital
507 mandatory intergovernmental transfer.
508 (1) [
509 intergovernmental transfer to the Medicaid Expansion Fund created in Section 26-36b-208, in
510 accordance with this section.
511 (2) The [
512 shall pay the intergovernmental transfer beginning on the later of CMS approval of:
513 (a) the health improvement program waiver under Section 26-18-411; or
514 (b) the assessment for private hospitals in this chapter[
515 [
516 (3) The intergovernmental transfer [
517 as follows:
518 (a) the state teaching hospital is responsible for:
519 (i) 30% of the portion of the hospital share specified in Subsections
520 26-36b-204(1)(a)[
521 (ii) 0% of the hospital share specified in Subsection 26-36b-204(1)[
522 (b) non-state government hospitals are responsible for:
523 (i) 1% of the portion of the hospital share specified in Subsections 26-36b-204(1)(a)[
524
525 (ii) 0% of the hospital share specified in Subsection 26-36b-204(1)[
526 (4) The department shall, by rule made in accordance with Title 63G, Chapter 3, Utah
527 Administrative Rulemaking Act, designate:
528 (a) the method of calculating the [
529 and
530 (b) the schedule for the intergovernmental transfers.
531 Section 11. Section 26-36b-207 is amended to read:
532 26-36b-207. Penalties.
533 (1) A hospital that fails to pay [
534 intergovernmental transfer, or file a return as required under this chapter, within the time
535 required by this chapter, shall pay penalties described in this section, in addition to the
536 assessment or intergovernmental transfer[
537 [
538
539
540 [
541 mandated intergovernmental transfer, the department shall add to the assessment or
542 intergovernmental transfer:
543 [
544 date; and
545 [
546 the penalty imposed under Subsection (2)[
547 on:
548 [
549 [
550 [
551 shown, the division may waive, reduce, or compromise any of the penalties imposed under this
552 chapter.
553 Section 12. Section 26-36b-208 is amended to read:
554 26-36b-208. Medicaid Expansion Fund.
555 (1) There is created an expendable special revenue fund known as the Medicaid
556 Expansion Fund.
557 (2) The fund consists of:
558 (a) assessments collected under this chapter;
559 (b) intergovernmental transfers under Section 26-36b-206;
560 (c) savings attributable to the health coverage improvement program [
561
562 (d) savings attributable to the enhancement waiver program as determined by the
563 department;
564 [
565 drug list under Subsection 26-18-2.4(3) as determined by the department;
566 [
567 Plan under Subsection 49-20-401(1)(u);
568 [
569 the fund from private sources; [
570 (h) interest earned on money in the fund; and
571 [
572 (3) (a) The fund shall earn interest.
573 (b) All interest earned on fund money shall be deposited into the fund.
574 (4) (a) A state agency administering the provisions of this chapter may use money from
575 the fund to pay the costs [
576 sources, of:
577 (i) the health coverage improvement [
578 program;
579 (ii) the enhancement waiver program; and
580 (iii) the outpatient [
581 26-36b-210[
582
583 (b) A state agency administering the provisions of this chapter may not use:
584 (i) funds described in Subsection (2)(b) [
585 outpatient [
586 [
587 described in Subsection (4)(a).
588 Section 13. Section 26-36b-209 is amended to read:
589 26-36b-209. Hospital reimbursement.
590 (1) [
591 program is implemented by contracting with a Medicaid accountable care organization, the
592 department shall, to the extent allowed by law, include, in a contract [
593
594 program or the enhancement waiver program, a requirement that the Medicaid accountable care
595 organization reimburse hospitals in the accountable care organization's provider network[
596 no less than the Medicaid fee-for-service rate.
597 (2) If the health coverage improvement program or the enhancement waiver program is
598 implemented by the department as a fee-for-service program, the department shall reimburse
599 hospitals at no less than the Medicaid fee-for-service rate.
600 (3) Nothing in this section prohibits a Medicaid accountable care organization from
601 paying a rate that exceeds the Medicaid fee-for-service [
602 Section 14. Section 26-36b-210 is amended to read:
603 26-36b-210. Outpatient upper payment limit supplemental payments.
604 [
605
606
607 [
608 and for each subsequent fiscal year [
609 upper payment limit program for private hospitals that shall supplement the reimbursement to
610 private hospitals in accordance with Subsection [
611 [
612 under Subsection [
613 (a) does not exceed the positive [
614 (b) [
615 [
616
617 Subsection [
618 [
619
620 (a) July 1, 2016;
621 (b) the effective date of the Medicaid state plan amendment necessary to implement the
622 payments under this section; or
623 (c) the effective date of the coverage provided through the health coverage
624 improvement program [
625 Section 15. Section 26-36b-211 is amended to read:
626 26-36b-211. Repeal of assessment.
627 (1) The [
628
629
630 [
631 (a) the executive director certifies that:
632 (i) action by Congress [
633 assessment imposed by this chapter from counting toward state Medicaid funds available to be
634 used to determine the amount of federal financial participation;
635 [
636 (ii) a decision, enactment, or other determination by the Legislature or by any court,
637 officer, department, or agency of the state, or of the federal government, [
638 is in effect that:
639 [
640 Medicaid funds available to be used to determine federal financial participation for Medicaid
641 matching funds; or
642 [
643 at least one of the Medicaid [
644 [
645 (iii) a change is in effect that reduces the aggregate hospital inpatient and outpatient
646 payment rate below the aggregate hospital inpatient and outpatient payment rate for July 1,
647 2015; [
648 [
649 [
650
651
652
653
654
655 (2) If the assessment is repealed under Subsection (1):
656 (a) the division may not collect any assessment or intergovernmental transfer under this
657 chapter;
658 (b) the department shall disburse money in the special Medicaid Expansion Fund in
659 accordance with the requirements in Subsection 26-36b-208(4), to the extent federal matching
660 is not reduced by CMS due to the repeal of the assessment;
661 (c) any money remaining in the Medicaid Expansion Fund after the disbursement
662 described in Subsection (2)(b) that was derived from assessments imposed by this chapter shall
663 be refunded to the hospitals in proportion to the amount paid by each hospital for the last three
664 fiscal years; and
665 (d) any money remaining in the Medicaid Expansion Fund after the disbursements
666 described in Subsections (2)(b) and (c) shall be deposited into the General Fund by the end of
667 the fiscal year that the assessment is suspended.
668 Section 16. Section 63I-1-226 is amended to read:
669 63I-1-226. Repeal dates, Title 26.
670 (1) Section 26-1-40 is repealed July 1, 2019.
671 (2) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
672 1, 2025.
673 (3) Section 26-10-11 is repealed July 1, 2020.
674 (4) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2024.
675 (5) Title 26, Chapter 36a, Hospital Provider Assessment Act, is repealed July 1, 2019.
676 (6) Title 26, Chapter 36b, Inpatient Hospital Assessment Act, is repealed July 1, 2021.
677 [
678 [
679 [
680 Section 17. Coordinating H.B. 325 with H.B. 14 -- Superseding substantive and
681 technical amendments.
682 If this H.B. 325 and H.B. 14, Substance Abuse Treatment Facility Patient Brokering,
683 both pass and become law, it is the intent of the Legislature that the amendments to Section
684 26-36b-103 in this bill supersede the amendments to Section 26-36b-103 in H.B. 14, when the
685 Office of Legislative Research and General Counsel prepares the Utah Code database for
686 publication.
687 Section 18. Coordinating H.B. 325 with H.B. 472 -- Substantive and technical
688 amendments.
689 If this H.B. 325 and H.B. 472, Medicaid Expansion Revisions, both pass and become
690 law, it is the intent of the Legislature that the Office of Legislative Research and General
691 Counsel shall prepare the Utah Code database for publication by making the following
692 changes:
693 (1) modifying Subsection 26-18-415(3) to read:
694 "(3) (a) The division shall apply for a Medicaid waiver or a state plan amendment with
695 CMS to implement, within the state Medicaid program, the enhancement waiver program
696 described in this section within six months after the day on which:
697 (i) the division receives a notice from CMS that the waiver for the Medicaid waiver
698 expansion submitted under Section 26-18-415, Medicaid waiver expansion, will not be
699 approved; or
700 (ii) the division withdraws the waiver for the Medicaid waiver expansion submitted
701 under Section 26-18-415, Medicaid waiver expansion.
702 (b) The division may not apply for a waiver under Subsection (3)(a) while a waiver
703 request under Section 26-18-415, Medicaid waiver expansion, is pending with CMS.";
704 (2) modifying Subsection 26-36b-201(3) to read:
705 "(3) The first quarterly payment [
706 after the earlier of the effective [
707 (a) the health coverage improvement program [
708 (b) the enhancement waiver program; or
709 (c) the Medicaid waiver expansion.";
710 (3) modifying Section 26-36b-204 to read:
711 "26-36b-204. Hospital financing of health coverage improvement program
712 Medicaid waiver -- Hospital share.
713 [
714 (1) The hospital share is:
715 (a) 45% of the state's net cost of[
716 [
717 with dependent children up to the federal poverty level designated under Section 26-18-411;
718 [
719 [
720 (b) 45% of the state's net cost of the enhancement waiver program;
721 (c) if the waiver for the Medicaid waiver expansion is approved, $11,900,000; and
722 (d) 45% of the state's net cost of the upper payment limit gap.
723 [
724 (2) (a) The hospital share is capped at no more than $13,600,000 annually, consisting
725 of:
726 (i) an $11,900,000 cap [
727 Subsections (1)(a)[
728 (ii) a $1,700,000 cap for the program specified in Subsection [
729 [
730 (b) The department shall prorate the cap described in Subsection (2)(a) in any year in
731 which the programs specified in [
732 full fiscal year[
733 [
734
735
736 [
737 (3) Private hospitals shall be assessed under this chapter for:
738 (a) 69% of the portion of the hospital share for the programs specified in Subsections
739 (1)(a)[
740 (b) 100% of the portion of the hospital share specified in Subsection [
741 [
742 October 15 of each subsequent year [
743 cost of each of the programs described in Subsections (1)(a)[
744 effect for that year.
745 (b) If the assessment collected in the previous fiscal year is above or below the [
746
747 hospitals for the previous fiscal year, the underpayment or overpayment of the assessment by
748 the private hospitals shall be applied to the fiscal year in which the report [
749 [
750 each year, report to the department the following data from the prior state fiscal year for each
751 private hospital, state teaching hospital, and non-state government hospital provider that the
752 Medicaid accountable care organization contracts with:
753 (a) for the traditional Medicaid population[
754
755 (i) hospital inpatient payments;
756 (ii) hospital inpatient discharges;
757 (iii) hospital inpatient days; and
758 (iv) hospital outpatient payments; and
759 [
760
761 (b) if the Medicaid accountable care organization enrolls any individuals in the health
762 coverage improvement program, the enhancement waiver program, or the Medicaid waiver
763 expansion, for the population newly eligible for any of those programs:
764 (i) hospital inpatient payments;
765 (ii) hospital inpatient discharges;
766 (iii) hospital inpatient days; and
767 (iv) hospital outpatient payments.
768 (6) The department shall, by rule made in accordance with Title 63G, Chapter 3, Utah
769 Administrative Rulemaking Act, provide details surrounding specific content and format for
770 the reporting by the Medicaid accountable care organization.";
771 (4) modifying Subsection 26-36b-206(3) to read:
772 "(3) The intergovernmental transfer [
773 as follows:
774 (a) the state teaching hospital is responsible for:
775 (i) 30% of the portion of the hospital share specified in Subsections
776 26-36b-204(1)(a)[
777 (ii) 0% of the hospital share specified in Subsection 26-36b-204(1)[
778 (b) non-state government hospitals are responsible for:
779 (i) 1% of the portion of the hospital share specified in Subsections 26-36b-204(1)(a)[
780
781 (ii) 0% of the hospital share specified in Subsection 26-36b-204(1)[
782 (5) modifying Section 26-36b-208 to read:
783 "26-36b-208. Medicaid Expansion Fund.
784 (1) There is created an expendable special revenue fund known as the Medicaid
785 Expansion Fund.
786 (2) The fund consists of:
787 (a) assessments collected under this chapter;
788 (b) intergovernmental transfers under Section 26-36b-206;
789 (c) savings attributable to the health coverage improvement program [
790
791 (d) savings attributable to the enhancement waiver program as determined by the
792 department;
793 (e) savings attributable to the Medicaid waiver expansion as determined by the
794 department;
795 [
796 drug list under Subsection 26-18-2.4(3) as determined by the department;
797 [
798 Plan under Subsection 49-20-401(1)(u);
799 [
800 the fund from private sources; [
801 (i) interest earned on money in the fund; and
802 [
803 (3) (a) The fund shall earn interest.
804 (b) All interest earned on fund money shall be deposited into the fund.
805 (4) (a) A state agency administering the provisions of this chapter may use money from
806 the fund to pay the costs [
807 sources, of:
808 (i) the health coverage improvement [
809 program;
810 (ii) the enhancement waiver program;
811 (iii) the Medicaid waiver expansion; and
812 (iv) the outpatient [
813 26-36b-210[
814
815 (b) A state agency administering the provisions of this chapter may not use:
816 (i) funds described in Subsection (2)(b) may be used to pay the cost of private
817 outpatient [
818 [
819 not described in Subsection (4)(a).";
820 (6) modifying Section 26-36b-209 to read:
821 "26-36b-209. Hospital reimbursement.
822 (1) [
823 program, or the Medicaid waiver expansion is implemented by contracting with a Medicaid
824 accountable care organization, the department shall, to the extent allowed by law, include, in a
825 contract [
826 coverage improvement program, the enhancement waiver program, or the Medicaid waiver
827 expansion, a requirement that the Medicaid accountable care organization reimburse hospitals
828 in the accountable care organization's provider network[
829 fee-for-service rate.
830 (2) If the health coverage improvement program, the enhancement waiver program, or
831 the Medicaid waiver expansion is implemented by the department as a fee-for-service program,
832 the department shall reimburse hospitals at no less than the Medicaid fee-for-service rate.
833 (3) Nothing in this section prohibits a Medicaid accountable care organization from
834 paying a rate that exceeds the Medicaid fee-for-service [
835 (7) Section 26-36b-211 in this H.B. 325 supersedes Section 26-36b-211 in H.B. 472.
836 Section 19. Coordinating H.B. 325 with S.B. 125 -- Superseding substantive and
837 technical amendments.
838 If this H.B. 325 and S.B. 125, Child Welfare Amendments, both pass and become law,
839 it is the intent of the Legislature that the amendments to Section 26-36b-103 in this bill
840 supersede the amendments to Section 26-36b-103 in S.B. 125, when the Office of Legislative
841 Research and General Counsel prepares the Utah Code database for publication.
842