Report Title:

Federal Medical Assistance Percentage

Description:

Provides that payments for medical care on the basis of the federal medical assistance percentage will be computed according to a set formula.

THE SENATE

S.B. NO.

1579

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to medical care payments.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Medicaid payments made to health care providers for services to the aged, blind, and disabled population are not sufficient to cover the actual costs of care. Hawaii's Medicaid program is funded by state moneys and federal matching funds. Health care providers have made efforts to increase the federal match (the federal medical assistance percentage or FMAP). In recent years, however, when the federal match has increased, the State has reduced its portion so that the total funding for Hawaii's Medicaid program has remained the same.

The purpose of this bill is to prevent the reduction of the State's share of Medicaid funding when the federal portion is increased so that payments to health care providers can increase to cover the actual costs of care.

SECTION 2. Section 346-59, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department shall adopt rules under chapter 91 concerning payment to providers of medical care. The department shall determine the rates of payment due to all providers of medical care, and pay such amounts in accordance with the requirements of the appropriations act and the Social Security Act, as amended[.], provided that the payments made on the basis of the federal medical assistance percentage shall be computed according to the formula described in 42 Code of Federal Regulations, part 433, subpart A. Payments to critical access hospitals for services rendered to medicaid beneficiaries shall be calculated on a cost basis using medicare reasonable cost principles."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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