FINAL BILL REPORT

                           ESB 6404

                           C 39 L 94

                      SYNOPSIS AS ENACTED

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

SPONSORS: Senators Wojahn, McAuliffe and Moyer; by request of Department of Social and Health Services

SENATE COMMITTEE ON HEALTH & HUMAN SERVICES

HOUSE COMMITTEE ON HEALTH CARE

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.  This decision, if applied to present practice, would delay MAA's ability to change payment rates for providers.

SUMMARY:

Calculation of payment rates for services and items purchased as public assistance for medical care is explicitly exempt from the state Administrative Procedure Act.

VOTES ON FINAL PASSAGE:

Senate    45   0

House     96   0

EFFECTIVE:June 9, 1994