FINAL BILL REPORT

                      HB 2314

                            Synopsis as Enacted

                                  C 8 L 92

 

Brief Description:  Revising provisions for providing medical services.

 

By Representative Franklin; by request of Dept. of Social and Health Services.

 

House Committee on Health Care

Senate Committee on Health & Long-Term Care

 

Background:  The Department of Social and Health Services' (DSHS's) medical assistance (Medicaid) program is the state's largest publicly funded health benefits program.  It provides medical services 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.  It serves about 510,000 persons monthly, with a biennial budget of $2.2 billion.

 

Current law requires DSHS to reimburse hospitals on a "day rate" or "ratio to charge of cost" basis.  These methods are out-dated and no longer used.

 

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

 

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

 

Votes on Final Passage: 

 

House 96    0

Senate   43    3

 

Effective:     June 11, 1992