Print Friendly SENATE BILL NO. 1274 – Approp, H&W, Medical Assistance
SENATE BILL NO. 1274
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S1274............................................................by FINANCE
APPROPRIATIONS - DEPARTMENT OF HEALTH AND WELFARE - MEDICAL ASSISTANCE
SERVICES - Appropriates $809,515,600 to the Department of Health and
Welfare for Medical Assistance Services for fiscal year 2002; authorizes
the State Controller to make transfers to the Cooperative Welfare Fund;
reappropriates unexpended and unencumbered fund balances of the Cooperative
Welfare Fund for nonrecurring expenditures; authorizes expenditure of all
receipts collected as noncognizable funds; provides intent regarding the
Children's Health Insurance Program; provides intent regarding state
veterans homes; provides intent regarding private intermediate care
facilities for the mentally retarded; provides intent regarding use of
generic drugs; provides intent regarding rates paid for durable medical
equipment; provides intent with regard to a regional comprehensive
utilization management plan; provides intent regarding cost-sharing by
Medicaid clients; provides intent regarding day treatment services to
clients with mental illness; provides intent regarding reduction of
outreach efforts; provides legislative intent regarding salary savings; and
appropriates an additional $112,358,900 to the Department of Health and
Welfare for Medical Services for fiscal year 2001.
03/29 Senate intro - 1st rdg - to printing
Rpt prt - to Fin
Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 21-14-0
AYES -- Boatright, Brandt, Bunderson, Burtenshaw, Cameron, Danielson,
Darrington, Deide, Geddes, Goedde, Ingram, King-Barrutia, Lodge, Noh,
Risch, Sandy, Sims, Sorensen, Stegner, Thorne, Williams
NAYS -- Andreason, Branch, Davis, Dunklin, Frasure, Hawkins, Ipsen,
Keough, Lee, Richardson, Schroeder, Stennett, Wheeler, Whitworth
Absent and excused -- None
Floor Sponsor -- Cameron
Title apvd - to House
03/30 House intro - 1st rdg - to 2nd rdg
Rls susp - PASSED - 34-29-7
AYES -- Barraclough, Bedke, Bell, Bruneel, Collins, Deal, Ellsworth,
Field(13), Field(20), Gagner, Gould, Hadley, Hansen, Harwood,
Higgins, Hornbeck, Kellogg, Kunz, Loertscher, Mader, Meyer,
Mortensen, Moss, Pischner, Pomeroy, Sali, Schaefer, Smylie,
Stevenson, Stone, Tilman, Trail, Young(Young), Mr. Speaker
NAYS -- Barrett, Bieter, Boe, Bolz, Bradford, Chase, Clark, Cuddy,
Denney, Eskridge, Hammond, Henbest(Farley), Jaquet, Jones, Kendell,
Lake, Langford, Marley, McKague, Montgomery, Moyle, Pearce, Raybould,
Ridinger, Roberts, Robison, Shepherd, Wheeler, Wood
Absent and excused -- Black, Callister, Campbell, Crow, Ellis,
Sellman, Smith
Floor Sponsor -- Gagner
Title apvd - to Senate
To enrol - rpt enrol - Pres signed
Sp signed
04/02 To Governor
04/09 Governor signed
Session Law Chapter 368
Effective: 04/09/01, section 16
07/01/01, all other sections
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1274
BY FINANCE COMMITTEE
1 AN ACT
2 APPROPRIATING MONEYS TO THE DEPARTMENT OF HEALTH AND WELFARE FOR MEDICAL
3 ASSISTANCE SERVICES FOR FISCAL YEAR 2002; PROVIDING THAT THE STATE CON-
4 TROLLER SHALL MAKE TRANSFERS FROM THE GENERAL FUND; REAPPROPRIATING CER-
5 TAIN UNEXPENDED AND UNENCUMBERED BALANCES OF MONEYS; AUTHORIZING THE
6 EXPENDITURE OF ALL RECEIPTS COLLECTED; EXPRESSING LEGISLATIVE INTENT WITH
7 REGARD TO THE CHILDREN'S HEALTH INSURANCE PROGRAM; EXEMPTING STATE VET-
8 ERANS HOMES FROM COST LIMITS; EXPRESSING LEGISLATIVE INTENT WITH REGARD TO
9 CAPPING THE NUMBER OF BEDS IN MEDICAID FUNDED PRIVATE INTERMEDIATE CARE
10 FACILITIES FOR THE MENTALLY RETARDED; EXPRESSING LEGISLATIVE INTENT WITH
11 REGARD TO CAPPING RATES FOR INTERMEDIATE CARE FACILITIES FOR THE MENTALLY
12 RETARDED AT FISCAL YEAR 2000 LEVELS; EXPRESSING LEGISLATIVE INTENT WITH
13 REGARD TO GENERIC DRUGS; EXPRESSING LEGISLATIVE INTENT WITH REGARD TO CAP-
14 PING RATES FOR DURABLE MEDICAL EQUIPMENT AT FISCAL YEAR 2000 LEVELS;
15 EXPRESSING LEGISLATIVE INTENT WITH REGARD TO UTILIZATION MANAGEMENT;
16 EXPRESSING LEGISLATIVE INTENT WITH REGARD TO COPAYMENTS AND OTHER COST-
17 SHARING METHODS; EXPRESSING LEGISLATIVE INTENT WITH REGARD TO DAY TREAT-
18 MENT SERVICES PROVIDED TO CLIENTS WITH MENTAL ILLNESS; REDUCING OUTREACH
19 EFFORTS TO THE MINIMUM ALLOWED BY FEDERAL LAW; EXPRESSING LEGISLATIVE
20 INTENT WITH REGARD TO SALARY SAVINGS; APPROPRIATING ADDITIONAL MONEYS TO
21 THE DEPARTMENT OF HEALTH AND WELFARE FOR MEDICAL ASSISTANCE SERVICES FOR
22 FISCAL YEAR 2001; AND DECLARING AN EMERGENCY FOR SECTION 16 OF THIS ACT.
23 Be It Enacted by the Legislature of the State of Idaho:
24 SECTION 1. There is hereby appropriated to the Department of Health and
25 Welfare for Medical Assistance Services the following amounts to be expended
26 according to the designated expense classes from the various funds listed for
27 the period July 1, 2001, through June 30, 2002:
28 FOR
29 FOR FOR TRUSTEE AND
30 PERSONNEL OPERATING BENEFIT
31 COSTS EXPENDITURES PAYMENTS TOTAL
32 MEDICAL ASSISTANCE SERVICES:
33 FROM:
34 General
35 Fund $ 4,775,000 $ 3,147,800 $221,388,500 $229,311,300
36 Medical Assistance
37 Fund 2,500 2,500
38 Liquor Control
39 Fund 639,200 639,200
2
1 FOR
2 FOR FOR TRUSTEE AND
3 PERSONNEL OPERATING BENEFIT
4 COSTS EXPENDITURES PAYMENTS TOTAL
5 Cooperative Welfare
6 Fund
7 (Federal) 6,875,300 10,819,200 538,109,300 555,803,800
8 Cooperative Welfare
9 Fund
10 (Dedicated) 23,758,800 23,758,800
11 TOTAL $11,650,300 $13,967,000 $783,898,300 $809,515,600
12 SECTION 2. As appropriated, the State Controller shall make transfers of
13 the General Fund to the Cooperative Welfare Fund, periodically, as requested
14 by the director of the Department of Health and Welfare and approved by the
15 Board of Examiners.
16 SECTION 3. There is hereby reappropriated to the Department of Health and
17 Welfare for Medical Assistance Services any unexpended and unencumbered bal-
18 ances of the Cooperative Welfare Fund as appropriated for Medical Assistance
19 Services for fiscal year 2001, to be used for nonrecurring expenditures only
20 for the period July 1, 2001, through June 30, 2002. The reappropriation shall
21 be computed by the Department of Health and Welfare from available moneys.
22 SECTION 4. Notwithstanding the provisions of Section 67-3516(2), Idaho
23 Code, the Department of Health and Welfare for Medical Assistance Services is
24 hereby authorized to expend all receipts collected as noncognizable funds for
25 the period July 1, 2001, through June 30, 2002.
26 SECTION 5. It is the intent of the Idaho Legislature that the federal
27 Title XXI Children's Health Insurance Program, as appropriated in Section 1 of
28 this act, not exceed $4,600,000 in General Fund expenditures for the period
29 July 1, 2001, through June 30, 2002. In addition, the director of the Depart-
30 ment of Health and Welfare is hereby authorized to control program costs by
31 lowering or raising income eligibility criteria in order to stay within bud-
32 get; however, under no circumstance shall the department exceed one hundred
33 fifty percent (150%) of the federal poverty level that is used in determining
34 eligibility without prior legislative approval.
35 SECTION 6. It is the intent of the Idaho Legislature that for the period
36 July 1, 2001, through June 30, 2002, the cost limits described in Section
37 56-102(7) and (11), Idaho Code, shall not apply to state homes for veterans.
38 SECTION 7. It is the intent of the Idaho Legislature that the number of
39 beds in private intermediate care facilities for the mentally retarded funded
40 by Medicaid, be capped at four hundred eighty-six (486) beds, including any
41 beds planned or under construction.
42 SECTION 8. Notwithstanding the provisions of Section 56-113, Idaho Code,
43 it is the intent of the Idaho Legislature that for the period July 1, 2001,
44 through June 30, 2002, rates, including special rates of private intermediate
45 care facilities for the mentally retarded, shall not exceed the rates in
46 effect in state fiscal year 2000.
47 SECTION 9. It is the intent of the Idaho Legislature that the Department
3
1 of Health and Welfare require the use of generic drugs to the extent feasible
2 and allowed by law in the state's Medicaid Program. The department shall
3 develop a process of prior approval when the physician prescribes drugs other
4 than generic. The department is further directed to investigate and report, by
5 January 15, 2002, the feasibility of requiring the return of unused Medicaid
6 prescriptions for credit. In addition, the department is directed to prepare
7 and report, by January 2002, the feasibility of implementing a Medicaid pre-
8 ferred drug list.
9 SECTION 10. It is the intent of the Idaho Legislature that for the period
10 July 1, 2001, through June 30, 2002, the rates paid for durable medical equip-
11 ment provided to clients of the state's Medicaid Program shall not exceed the
12 rates in effect in state fiscal year 2000.
13 SECTION 11. It is the intent of the Idaho Legislature that the Department
14 of Health and Welfare continue designing a regional comprehensive utilization
15 management plan that rectifies current weaknesses without giving up the
16 strengths inherent in the system as outlined in the Lewin Group Report (page
17 57). Further, it is legislative intent that the Department of Health and Wel-
18 fare shall continue such program design and development in collaboration with
19 providers, advocates, and consumers and their families utilizing its estab-
20 lished Quality Improvement Subcommittees of the Quality Improvement Council as
21 a forum. The department shall use the established Quality Improvement Council
22 and subcommittees to assist in the development of negotiated rulemaking for
23 utilization management of Medicaid covered developmental disability and mental
24 health services that shall apply to facility and community-based settings and
25 at state-run institutions providing such services. The department shall be
26 allowed twelve (12) full-time positions for the express purpose of conducting
27 the continued activities as expressed in this intent language. The department
28 shall incorporate related aspects of the Jeff D. lawsuit in the development
29 process.
30 It is further legislative intent that the Department of Health and Wel-
31 fare, by July 1, 2001, and monthly thereafter until the legislature convenes
32 in January 2002, present a written progress report to the Chairmen of the
33 House Health and Welfare Committee and the Senate Health and Welfare Commit-
34 tee. Further, the department shall make an oral presentation to the Joint
35 Finance-Appropriations Committee at its interim 2001 meetings. New contracts
36 or modifications to existing contracts relative to the utilization management
37 project that are necessary for the implementation of any final program, shall
38 be facilitated by the Department of Administration after approval by the Joint
39 Finance-Appropriations Committee at their fall meeting.
40 The Department of Health and Welfare shall present to the Second Regular
41 Session of the Fifty-sixth Idaho Legislature, the proposed negotiated rule and
42 statutory changes needed to implement the utilization management program
43 described herein on a statewide basis.
44 SECTION 12. It is the intent of the Idaho Legislature that the Department
45 of Health and Welfare investigate the use of waivers or existing law and rule
46 to implement cost-effective programs for requiring client copayments for Med-
47 icaid prescriptions and services. The Department of Health and Welfare is fur-
48 ther directed to prepare and report, by January 15, 2002, its progress in
49 implementing a cost-sharing program.
50 SECTION 13. It is the intent of the Idaho Legislature that day treatment
51 services provided to clients with mental illness through the state's Medicaid
4
1 Program shall be limited to aiding in the transition from acute care to lesser
2 levels of care and to stabilization as a means of preventing hospitalization.
3 SECTION 14. It is the intent of the Idaho Legislature that the Department
4 of Health and Welfare conduct its outreach efforts in all programs to the min-
5 imum level allowed by federal law.
6 SECTION 15. Notwithstanding the provisions of Section 67-3511(1), Idaho
7 Code, it is hereby declared to be the intent of the Idaho Legislature that the
8 appropriation for personnel costs, as contained in Section 1 of this act,
9 shall be utilized only for personnel costs for the period July 1, 2001,
10 through January 1, 2002, which the Legislature intends will result in salary
11 savings. It is further legislative intent that carryover funds from fiscal
12 year 2001 shall be available for nonrecurring expenditures other than salaries
13 during fiscal year 2002. It is further legislative intent that in January
14 2002, the department shall report to the Joint Finance-Appropriations Commit-
15 tee regarding its salary savings and expenditures for operating expenses and
16 capital outlay during the first half of fiscal year 2002. Salary savings dur-
17 ing fiscal year 2002 will be available to the department for object transfers
18 for the purposes set out in Section 67-3511(1), Idaho Code, upon consent of
19 the Legislature as a supplemental appropriation during the Second Regular Ses-
20 sion of the Fifty-sixth Idaho Legislature.
21 SECTION 16. In addition to the appropriation made in Section 1, Chapter
22 409, Laws of 2000, there is hereby appropriated to the Department of Health
23 and Welfare for Medical Assistance Services the following amounts to be
24 expended according to the designated expense class from the listed funds for
25 the period July 1, 2000, through June 30, 2001:
26 FOR:
27 Trustee and Benefit Payments $112,358,800
28 FROM:
29 General Fund $ 33,057,700
30 Cooperative Welfare Fund (Dedicated) 1,960,400
31 Cooperative Welfare Fund (Federal) 77,340,700
32 TOTAL $112,358,800
33 SECTION 17. An emergency existing therefor, which emergency is hereby
34 declared to exist, Section 16 of this act shall be in full force and effect on
35 and after passage and approval.
| Statement of Purpose |
| RS11323 |
This bill appropriates $809,515,600 to the Department of Health and Welfare for Medical Assistance Services for fiscal year 2002. Of this amount, $229,311,300 is from the General Fund, $24,400,500 is from dedicated funds, and $555,803,800 is from matching federal funds. In addition, the bill includes a supplemental appropriation of $112,358,800 for fiscal year 2001. Of this amount, $33,057,700 is from the General Fund, $1,960,400 is from dedicated funds, and $77,340,700 is from matching federal funds.
 
| FY 2001 Original Appropriation |
174.92 |
171,888,300 |
22,853,100 |
412,268,600 |
607,010,000 |
| Reappropriations |
0.00 |
0 |
42,300 |
0 |
42,300 |
| Medical Assistance Services |
|
|
|
|
|
| 1. Benefit Payments – Supplemental |
0.00 |
33,057,700 |
1,960,400 |
77,340,700 |
112,358,800 |
| Recover Gain Sharing (Neg Supp) |
0.00 |
(109,000) |
0 |
(156,800) |
(265,800) |
| FY 2001 Total Appropriation |
174.92 |
204,837,000 |
24,855,800 |
489,452,500 |
719,145,300 |
| Expenditure Adjustments |
10.48 |
12,500 |
0 |
61,300 |
73,800 |
| FY 2001 Estimated Expenditures |
185.40 |
204,849,500 |
24,855,800 |
489,513,800 |
719,219,100 |
| Base Adjustments |
0.00 |
(102,000) |
(42,300) |
(374,800) |
(519,100) |
| Other Base Adjustments |
12.00 |
109,000 |
0 |
156,800 |
265,800 |
| FY 2002 Base |
197.40 |
204,856,500 |
24,813,500 |
489,295,800 |
718,965,800 |
| Personnel Cost Rollups |
0.00 |
9,800 |
0 |
14,100 |
23,900 |
| Inflationary Adjustments |
0.00 |
3,343,900 |
430,600 |
8,351,600 |
12,126,100 |
| Replacement Items |
0.00 |
0 |
0 |
0 |
0 |
| Nonstandard Adjustments |
0.00 |
21,472,300 |
2,868,600 |
50,728,200 |
75,069,100 |
| Change in Employee Compensation |
0.00 |
191,800 |
0 |
275,500 |
467,300 |
| Fund Shifts |
0.00 |
(1,397,100) |
(3,712,200) |
5,109,300 |
0 |
| FY 2002 Program Maintenance |
197.40 |
228,477,200 |
24,400,500 |
553,774,500 |
806,652,200 |
| Enhancements |
|
|
|
|
|
| Medical Assistance Services |
|
|
|
|
|
| 1. Surveyor Positions |
0.00 |
0 |
0 |
0 |
0 |
| 2. Personal Needs Allowance Increase |
0.00 |
107,400 |
0 |
253,900 |
361,300 |
| 3. Capital Request – Additional Items |
0.00 |
0 |
0 |
0 |
0 |
| 4. Seriously Emotionally Disturbed Children |
0.00 |
726,700 |
0 |
1,775,400 |
2,502,100 |
| FY 2002 Total |
197.40 |
229,311,300 |
24,400,500 |
555,803,800 |
809,515,600 |
| Chg from FY 2001 Orig Approp |
22.48 |
57,423,000 |
1,547,400 |
143,535,200 |
202,505,600 |
| % Chg from FY 2001 Orig Approp. |
12.9% |
33.4% |
6.8% |
34.8% |
33.4% |
Contact: Dick Burns 334-4742
Legislative Services Office, Budget & Policy Analysis
| Statement of Purpose/Fiscal Note |
Bill No. S1274 |