On March 31 the Senate Finance Committee heard Article II budget recommendations on Health and Human Services Exceptional Items as favorably referred by the Senate Finance Subcommittee on Medicaid/Article II Work Group. The Subcommittee broke its recommendations into Priority 1 and 2 items with the intent that Priority 1 recommendations be restored to the base budget bill, and Priority 2 items be left for further consideration should funds become available to Article II during the budget writing process.
During the hearing several items were removed from Priority 1 and Priority 2 status and adopted as pending. Among the Priority 1 items and funding requests moved to pending are:
- Provider rates: Restore 5% and SP 54 reductions for Nursing Homes and ICF-MR
- Medicaid Rates: Restore Hospitals 5% – restores TEFRA
The Committee adopted the Article II budget recommendations as amended in a favorable 11 – 4 vote, restoring an estimated $4.3 billion to the base budget.
The approved reimbursement rates were as follows:
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Article II Special Provisions – Proposed Rider – Information on Funding for Provider Rates |
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FY 2011 |
2012-2013 Biennium |
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B. Health and Human Services Commission |
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CHIP Physicians |
-2% |
0% |
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Other CHIP Providers |
-2% |
-8% |
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Medicaid Physicians Services |
-2% |
0% |
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Medicaid Dental and Orthodontic Services |
-2% |
0% |
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Medicaid Durable Medical Equipment |
-2% |
-10.50% |
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Medicaid Laboratory Services |
-2% |
-10.50% |
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Other Medicaid Providers |
-2% |
-3% |
Other funding restored includes $19.2 million for HIV medications to pay for an additional 3,000 low-income patients expected to need the life-saving drugs.
The recommendations also restore certain mental health services, tobacco cessation programs and preparedness programs.
Chairman Steve Ogden emphasized all pending items will be sent back to the Subcommittee for further discussion and final recommendation before the Committee takes its final vote on SB 1.