Passed by the House May 9, 2011 Yeas 52   FRANK CHOPP ________________________________________ Speaker of the House of Representatives Passed by the Senate May 25, 2011 Yeas 26   BRAD OWEN ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 2069 as passed by the House of Representatives and the Senate on the dates hereon set forth. BARBARA BAKER ________________________________________ Chief Clerk | |
Approved June 15, 2011, 2:55 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | June 15, 2011 Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 1st Special Session |
Read first time 04/09/11. Referred to Committee on Ways & Means.
AN ACT Relating to increasing the sum available to the state from the hospital safety net assessment fund by reducing hospital payments; amending RCW 74.60.020 and 74.60.090; providing an effective date; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 74.60.020 and 2010 1st sp.s. c 30 s 3 are each amended
to read as follows:
(1) A dedicated fund is hereby established within the state
treasury to be known as the hospital safety net assessment fund. The
purpose and use of the fund shall be to receive and disburse funds,
together with accrued interest, in accordance with this chapter.
Moneys in the fund, including interest earned, shall not be used or
disbursed for any purposes other than those specified in this chapter.
Any amounts expended from the fund that are later recouped by the
department on audit or otherwise shall be returned to the fund.
(a) Any unexpended balance in the fund at the end of a fiscal
biennium shall carry over into the following biennium and shall be
applied to reduce the amount of the assessment under RCW
74.60.050(1)(c).
(b) Any amounts remaining in the fund on July 1, 2013, shall be
used to make increased payments in accordance with RCW 74.60.090 and
74.60.120 for any outstanding claims with dates of service prior to
July 1, 2013. Any amounts remaining in the fund after such increased
payments are made shall be refunded to hospitals, pro rata according to
the amount paid by the hospital, subject to the limitations of federal
law.
(2) All assessments, interest, and penalties collected by the
department under RCW 74.60.030 and 74.60.050 shall be deposited into
the fund.
(3) Disbursements from the fund may be made only as follows:
(a) Subject to appropriations and the continued availability of
other funds in an amount sufficient to maintain the level of medicaid
hospital rates in effect on July 1, 2009;
(b) Upon certification by the secretary that the conditions set
forth in RCW 74.60.150(1) have been met with respect to the assessments
imposed under RCW 74.60.030 (1) and (2), the payments provided under
RCW 74.60.080, payments provided under RCW 74.60.120(2), and any
initial payments under RCW 74.60.100 and 74.60.110, funds shall be
disbursed in the amount necessary to make the payments specified in
those sections;
(c) Upon certification by the secretary that the conditions set
forth in RCW 74.60.150(1) have been met with respect to the assessments
imposed under RCW 74.60.030(3) and the payments provided under RCW
74.60.090 and 74.60.130, payments made subsequent to the initial
payments under RCW 74.60.100 and 74.60.110, and payments under RCW
74.60.120(3), funds shall be disbursed periodically as necessary to
make the payments as specified in those sections;
(d) To refund erroneous or excessive payments made by hospitals
pursuant to this chapter;
(e) The sum of forty-nine million three hundred thousand dollars
((per)) for the 2009-2011 fiscal biennium may be expended in lieu of
state general fund payments to hospitals. An additional sum of
seventeen million five hundred thousand dollars for the 2009-2011
fiscal biennium may be expended in lieu of state general fund payments
to hospitals if additional federal financial participation under
section 5001 of P.L. No. 111-5 is extended beyond December 31, 2010.
The sum of one hundred ninety-nine million eight hundred thousand
dollars for the 2011-2013 fiscal biennium may be expended in lieu of
state general fund payments to hospitals;
(f) The sum of one million dollars per biennium may be disbursed
for payment of administrative expenses incurred by the department in
performing the activities authorized by this chapter;
(g) To repay the federal government for any excess payments made to
hospitals from the fund if the assessments or payment increases set
forth in this chapter are deemed out of compliance with federal
statutes and regulations and all appeals have been exhausted. In such
a case, the department may require hospitals receiving excess payments
to refund the payments in question to the fund. The state in turn
shall return funds to the federal government in the same proportion as
the original financing. If a hospital is unable to refund payments,
the state shall develop a payment plan and/or deduct moneys from future
medicaid payments.
Sec. 2 RCW 74.60.090 and 2010 1st sp.s. c 30 s 10 are each
amended to read as follows:
(1) Upon satisfaction of the applicable conditions set forth in RCW
74.60.150(1) and for services rendered on or after February 1, 2010,
through June 30, 2011, the department shall increase the medicaid
inpatient and outpatient fee-for-service hospital reimbursement rates
in effect on June 30, 2009, by the percentages specified below:
(a) Prospective payment system hospitals:
(i) Inpatient psychiatric services: Thirteen percent;
(ii) Inpatient services: Thirteen percent;
(iii) Outpatient services: Thirty-six and eighty-three one-hundredths percent.
(b) Harborview medical center and University of Washington medical
center:
(i) Inpatient psychiatric services: Three percent;
(ii) Inpatient services: Three percent;
(iii) Outpatient services: Twenty-one percent.
(c) Rehabilitation hospitals:
(i) Inpatient services: Thirteen percent;
(ii) Outpatient services: Thirty-six and eighty-three one-hundredths percent.
(d) Psychiatric hospitals:
(i) Inpatient psychiatric services: Thirteen percent;
(ii) Inpatient services: Thirteen percent.
(2) Upon satisfaction of the applicable conditions set forth in RCW
74.60.150(1) and for services rendered on or after July 1, 2011, the
department shall increase the medicaid inpatient and outpatient
fee-for-service hospital reimbursement rates in effect on June 30,
2009, by the percentages specified below:
(a) Prospective payment system hospitals:
(i) Inpatient psychiatric services: Thirteen percent;
(ii) Inpatient services: Three and ninety-six one-hundredths
percent;
(iii) Outpatient services: Twenty-seven and twenty-five one-hundredths percent.
(b) Harborview medical center and University of Washington medical
center:
(i) Inpatient psychiatric services: Three percent;
(ii) Inpatient services: Three percent;
(iii) Outpatient services: Twenty-one percent.
(c) Rehabilitation hospitals:
(i) Inpatient services: Thirteen percent;
(ii) Outpatient services: Thirty-six and eighty-three one-hundredths percent.
(d) Psychiatric hospitals:
(i) Inpatient psychiatric services: Thirteen percent;
(ii) Inpatient services: Thirteen percent.
(3) For claims processed for services rendered on or after February
1, 2010, but prior to satisfaction of the applicable conditions
specified in RCW 74.60.150(1), the department shall, within sixty
calendar days after satisfaction of those conditions, calculate the
amount payable to hospitals in accordance with this section and remit
the difference to each hospital that has submitted an otherwise
allowable claim for payment for such services.
(((3))) (4) By December 1, 2012, the department will submit a study
to the legislature with recommendations on the amount of the
assessments necessary to continue to support hospital payments for the
2013-2015 biennium. The evaluation will assess medicaid hospital
payments relative to medicaid hospital costs. The study should address
current federal law, including any changes on scope of medicaid
coverage, provisions related to provider taxes, and impacts of federal
health care reform legislation. The study should also address the
state's economic forecast. Based on the forecast, the department
should recommend the amount of assessment needed to support future
hospital payments and the departmental administrative expenses.
Recommendations should be developed with the fiscal committees of the
legislature, office of financial management, and the Washington state
hospital association.
NEW SECTION. Sec. 3 Sections 1 and 2 of this act expire July 1,
2013.
NEW SECTION. Sec. 4 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
July 1, 2011.