S‑0731.1   _____________________________________________

SENATE BILL 5363

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senators Thibaudeau, Parlette, Hewitt, Morton, Costa, Snyder, Hochstatter, Honeyford and Sheahan

Read first time 01/19/2001.  Referred to Committee on Health & Long‑Term Care.

_1      AN ACT Relating to providing state medical assistance

_2  reimbursements for small, rural hospitals that meet the criteria

_3  of a critical access hospital; adding new sections to chapter

_4  74.09 RCW; and creating new sections.

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6      NEW SECTION. Sec. 1.  The legislature finds that promoting a

_7  financially viable health care system in all parts of the state is

_8  a paramount interest.  The health care financing administration has

_9  recognized the crucial role that hospitals play in providing care

10  in rural areas by creating the critical access hospital program to

11  allow small, rural hospitals that qualify to receive reasonable

12  cost-based reimbursement for medicare services.  The legislature

13  further finds that creating a similar reimbursement system for the

14  state's medical assistance programs in small, rural hospitals that

15  qualify will help assure the long-term financial viability of the

16  rural health system in those communities.

17 

                               p. 1                       SB 5363

_1      NEW SECTION. Sec. 2.  A new section is added to chapter 74.09

_2  RCW to read as follows:

_3      Payments for recipients eligible for medical assistance

_4  programs under this chapter for services provided by hospitals,

_5  regardless of the beneficiary's managed care enrollment status,

_6  shall be made based on allowable costs incurred during the year,

_7  when services are provided by a rural hospital certified by the

_8  health care financing administration as a critical access

_9  hospital.  Any additional payments made by the medical assistance

10  administration for the healthy options program shall be no more

11  than the additional amounts per service paid under this section

12  for other medical assistance programs.

13      NEW SECTION. Sec. 3.  A new section is added to chapter 74.09

14  RCW to read as follows:

15      The department shall implement the program created in section 2

16  of this act within sixty days of the effective date of this act

17  regardless of the beneficiary's managed care status.

18      NEW SECTION. Sec. 4.  If specific funding for the purposes of

19  this act, referencing this act by bill or chapter number, is not

20  provided by June 30, 2001, in the omnibus appropriations act, this

21  act is null and void.

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SB 5363                        p. 2