SENATE BILL REPORT

                           ESB 6404

              AS PASSED SENATE, FEBRUARY 14, 1994

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

Majority Report:  Do pass as amended. 

     Signed by Senators Talmadge, Chairman; Wojahn, Vice Chairman; Deccio, Erwin, Franklin, Fraser, Hargrove, McAuliffe, Moyer, Niemi, Prentice, L. Smith and Winsley.

Staff:  Rhoda Jones (786‑7198)

Hearing Dates: February 2, 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.  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

TESTIMONY FOR:

The bill allows the Medical Assistance Administration (MAA) to set fee schedules without going through the public review process of the ADA.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Jim Peterson, Assistant Secretary, Medical Assistance Administration, DSHS; Susie Tracy, WSMA/WSMGMA; Dave Broderick, Hospital Association