SCS SB 578 -- HOSPITAL FEDERAL REIMBURSEMENT ALLOWANCE PROGRAM

CO-SPONSORS:  Goode, Russell (Green, 73)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 9 to 0.

This substitute revises the Hospital Federal Reimbursement
Allowance Program.  Current law requires the Department of
Social Services to make payments to Medicaid provider
hospitals.  The substitute requires that prior to June 30, 2002,
the payment be in an annual amount and allows reimbursement to
hospitals and clinics associated with land grant universities at
a level that is at least equal to that of other hospitals in the
state.

Beginning July 1, 2002, the Federal Reimbursement Allowance
Program will expire 180 days after the end of any fiscal year in
which the aggregate federal reimbursement allowance on hospitals
is more than 85% of the sum of direct Medicaid payments,
uninsured add-on payments, and enhanced graduate medical
education payments, unless during the 180-day period, payments
or assessments are adjusted prospectively by the Director of the
Department of Social Services to comply with the 85% test.
Direct Medicaid payments, uninsured add-on payments, and
enhanced graduate medical education payments are specified.

The Division of Medical Services may currently provide
alternative reimbursement for outpatient services.  The
substitute allows this reimbursement to include payments to
clinics serving low-income, uninsured patients.  The expiration
of the Federal Reimbursement Allowance Program is extended from
September 30, 2001, to September 30, 2004.

FISCAL NOTE:  Estimated Net Cost to Federal Reimbursement
Allowance Fund of Unknown in FY 2002, FY 2003, and FY 2004.
Costs are expected to exceed $4 million annually.

PROPONENTS:  Supporters say that this program is nearly 10 years
old and that as long as the federal government allows states to
take advantage of this program, Missouri should do so.

Testifying for the bill were Senator Goode; and Missouri
Hospital Association.

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:48 am