SENATE BILL REPORT

 

                           SHB 2493

 

                    AS OF FEBRUARY 14, 1994

 

 

Brief Description:  Excluding medical assistance administration reimbursement fees and schedules from the administrative procedure act.

 

SPONSORS: House Committee on Health Care (originally sponsored by Representatives Dellwo and Dyer; by request of Department of Social and Health Services)

 

HOUSE COMMITTEE ON HEALTH CARE

 

SENATE COMMITTEE ON HEALTH & HUMAN SERVICES

 

Staff:  Rhoda Jones (786‑7198)

 

Hearing Dates: February 16, 1994

 

 

BACKGROUND:

 

Fee schedules set by the Department of Social and Health Services Medical Assistance Administration (MAA) are established according to legislatively-approved budget provisions.  There is little discretion in setting payment rates since these  activities are primarily arithmetic rather than discretionary in nature.

 

A recent superior court decision ruled that the adoption of rate schedules by the MAA is "rulemaking" and must comply with the Administrative Procedure Act (APA), Chapter 34.05 RCW.  This decision, if applied to present practice, would delay MAA's ability to change payment rates for providers.

 

SUMMARY:

 

It is clarified that arithmetic calculation of payment rates for services and items purchased under contract for clients eligible under 74.09 RCW (public assistance for medical care) are explicitly exempt from the state Administrative Procedure Act.

 

 Appropriation:  none

 

Revenue:  none

 

Fiscal Note:  none requested