HOUSE BILL REPORT

                  HB 2314

             As Reported By House Committee on:

                         Health Care

Title:  An act relating to provision of medical services.

Brief Description:  Revising provisions for providing medical services.

Sponsor(s):  Representative Franklin; by request of Dept. of Social and Health Services.

Brief History:

  Reported by House Committee on:

Health Care, February 5, 1992, DP.

HOUSE COMMITTEE ON

HEALTH CARE

Majority Report: Do pass.  Signed by 11 members:  Representatives Braddock, Chair; Day, Vice Chair; Moyer, Ranking Minority Member; Casada, Assistant Ranking Minority Member; Cantwell; Edmondson; Franklin; Morris; Paris; Prentice; and Sprenkle.

Staff:  Bill Hagens (786-7131).

Background:  The Department of Social and Health Services' (DSHS's) medical assistance (Medicaid) program is the state's largest . It provides medical services such as Aid for Families with Dependent Children and Supplemental Security Income (AFDC and SSI) to low-income and disabled persons with a broad scope of services, including: preventive and primary care; in and out-patient services; dental care; drugs; medical equipment; and a variety of screening and testing services.  Presently it serves about 510,000 persons monthly, with a biennial budget of $2.2 billion.

Current statute (RCW 74.09.120) states that DSHS shall reimburse hospitals on a "day rate" or "ratio to charge of cost" basis.  These methods are out-dated and no longer used.

Presently, DSHS purchases in-patient hospital services on a selective contract or a prospective diagnosis-related groupings basis, and outpatient hospital services on a percentage of charge basis.

Summary of Bill:  Current language is deleted and replaced with wording that permits DSHS to purchase services on contract or established-rate basis.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill is needed to accurately reflect in statute the current payment system.

Testimony Against:  None.

Witnesses:  Jim Peterson, Department of Social and Health Services (pro).