6246-S AMS DARN SUGA 029

SSB 6246 - S AMD 671

By Senator Darneille

NOT ADOPTED 02/26/2016

    On page 64, line 4, increase the General Fund--State FY 2017 appropriation by $43,611,000

    On page 64, line 6, increase the General Fund--Federal appropriation by $32,168,000 and adjust the total appropriation accordingly.

    On page 70, after line 3, strike all of subsection (v), and insert the following:

    "(v) By April 1, 2016, the department must establish maximum levels for all reserves allowed under behavioral health organization contracts and must monitor and ensure that behavioral health organization reserves do not exceed maximum levels. The department must monitor behavioral health organization revenue and expenditure reports and must require a behavioral health organization to submit a corrective action plan when its reported reserves exceed maximum levels established under the contract. The department must review and approve such plans and monitor to ensure compliance. If the department determines that a behavioral health organization has failed to provide an adequate excess reserve corrective action plan or is not complying with an approved plan, the department must reduce payments to the behavioral health organization in accordance with remedial actions provisions included in the contract. These reductions in payments must continue until the department determines that the behavioral health organization has come into substantial compliance with an approved excess reserve corrective action plan."

     Renumber the remaining sections consecutively and correct any internal references accordingly.

EFFECT:  Instead of reducing funding for excess reserves in the Behavioral Health Organizations (BHO), the amendment requires the Department of Social and Health Services to monitor reserve levels of BHOs. BHOs must submit a corrective action plan when reserve levels exceed maximum contractual levels. Failure to submit or comply with a corrective action plan shall result in reduced payments to BHOs in accordance with contractual requirements.

FISCAL IMPACT:

FY 15-17:  $43,611,000 NGF-S ($75,779,000 Total Funds)

Four-Year: $ $43,611,000 NGF-S ($75,779,000 Total Funds)

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