Subject: Medicaid state plan amendment 03-027.

     Effective Date: December 18, 2003.

     Document Description: The Department of Social and Health Services, Medical Assistance Administration, is updating the Medicaid state plan through State Plan Amendment TN 03-027 to further describe policy and methods used in establishing hospital payment rates explained in Attachment 4.19-A, Part I of the plan.

     This update provides clarification on payment methodology for the following:

•	Clarification concerning payment for newborn screening tests; and
•	Clarification concerning disproportionate share hospital (DSH) payments for public hospitals. In this SPA the DSH payments for public hospitals that is not set at 100% of cost, will be augmented to indicate that the payments will not exceed 175% of costs for SFY2004 and SFY2005 only.

     Payment to hospitals is justified for newborn screening tests since newborn screening is an integral part of the newborn health care and the federal EPSDT program. The change in public hospitals DSH payments is justified through regulatory guidance issued by CMS.

     Written comments may be sent to Doug Porter, Assistant Secretary, Medical Assistance Administration, Department of Social and Health Services, P.O. Box 45080, Olympia, WA 98504-5080.

     For more information regarding this clarification of language, please write to Larry Linn, Rates Analysis Section, Medical Assistance Administration, Department of Social and Health Services, P.O. Box 45510, Olympia, WA 98504-5510.

     To receive a copy of the interpretive or policy statement, contact Ann Myers, Department of Social and Health Services, Medical Assistance Administration, Division of Policy and Analysis, P.O. Box 45533, Olympia, WA 98504, phone (360) 725-1345, weblink http://maa.dshs.wa.gov, TDD (800) 848-5429, fax (360) 586-9727, e-mail Myersea@dshs.wa.gov.

December 3, 2003

E. A. Myers

Manager

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