2005 Legislation
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SENATE BILL NO. 1036 – State prisoners, medical costs

SENATE BILL NO. 1036

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Bill Status



S1036aa..............................................by JUDICIARY AND RULES
STATE PRISONERS - Adds to existing law to set forth provisions applicable
to medical costs of state prisoners housed in correctional facilities.
                                                                        
01/20    Senate intro - 1st rdg - to printing
01/21    Rpt prt - to Jud
02/03    Rpt out - to 14th Ord
02/23    Rpt out amen - to engros
02/24    Rpt engros - 1st rdg - to 2nd rdg as amen
02/25    2nd rdg - to 3rd rdg as amen
03/02    3rd rdg as amen - PASSED - 32-0-3
      AYES -- Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron,
      Coiner, Compton, Corder, Davis, Gannon, Goedde, Hill, Jorgenson,
      Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee,
      McKenzie, Noble, Pearce, Richardson, Schroeder, Stegner, Stennett,
      Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Andreason, Darrington, Geddes
    Floor Sponsor - Richardson
    Title apvd - to House
03/03    House intro - 1st rdg - to Jud
03/18    Rpt out - rec d/p - to 2nd rdg
03/21    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 61-0-9
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Denney, Edmunson(Barker), Ellsworth, Field(18),
      Field(23), Garrett, Hart, Henbest, Henderson, Jaquet, Jones, Kemp,
      Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
      Miller, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
      Ringo, Roberts, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Smith(30), Smylie, Snodgrass,
      Stevenson, Trail, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Deal, Eskridge, Harwood, Mitchell, Ring,
      Rusche, Smith(24), Wills
    Floor Sponsor - LeFavour
    Title apvd - to Senate
03/22    To enrol
03/23    Rpt enrol - Pres signed
03/24    Sp signed
03/25    To Governor
03/28    Governor signed
         Session Law Chapter 157
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1036
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE BOARD OF CORRECTION; AMENDING CHAPTER 2, TITLE 20, IDAHO
  3        CODE, BY THE ADDITION OF A NEW SECTION 20-237B, IDAHO CODE, TO  SET  FORTH
  4        PROVISIONS  APPLICABLE  TO  THE MEDICAL COSTS OF STATE PRISONERS HOUSED IN
  5        CORRECTIONAL FACILITIES.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Chapter 2, Title 20, Idaho Code,  be,  and  the  same  is
  8    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  9    ignated as Section 20-237B, Idaho Code, and to read as follows:
                                                                        
 10        20-237B.  MEDICAL COSTS OF STATE PRISONERS HOUSED IN CORRECTIONAL  FACILI-
 11    TIES.  (1)  The state board of correction shall pay to a provider of a medical
 12    service for any and all prisoners confined  in  a  correctional  facility,  as
 13    defined in section 18-101A(1), Idaho Code, an amount no greater than the reim-
 14    bursement rate applicable based on the Idaho medicaid reimbursement rate. This
 15    limitation applies to all medical care services provided outside the facility,
 16    including  hospitalizations,   professional  services,  durable and nondurable
 17    goods, prescription drugs and medications provided to any  and  all  prisoners
 18    confined  in  a correctional facility, as defined in section 18-101A(1), Idaho
 19    Code.
 20        (2)  For the  purposes  of  subsection  (1)  of  this  section,  the  term
 21    "provider  of  a  medical  service" shall include only companies, professional
 22    associations and other health care service entities whose services are  billed
 23    directly to the department of correction. The term "provider of a medical ser-
 24    vice" shall exclude:
 25        (a)  Privatized  correctional  medical  providers  under contract with the
 26        department of correction to provide health care to prison inmates;
 27        (b)  Private prison companies;
 28        (c)  Out-of-state correctional facilities contracting with the  department
 29        of correction to house prisoners;
 30        (d)  County jails; and
 31        (e)  Companies,  professional  associations  and other health care service
 32        entities whose services are provided within the terms of  agreements  with
 33        privatized  correctional medical providers under contract with the depart-
 34        ment of correction, private prison companies and county jails.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved by    Richardson          
                                                                        
                                                     Seconded by Jorgenson           
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1036
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in line 19, following "Code." insert:  "For
  3    required  services  that  are not included in the Idaho medicaid reimbursement
  4    schedule, the state board of correction shall pay the reasonable value of such
  5    service.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1036, As Amended
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE BOARD OF CORRECTION; AMENDING CHAPTER 2, TITLE 20, IDAHO
  3        CODE, BY THE ADDITION OF A NEW SECTION 20-237B, IDAHO CODE, TO  SET  FORTH
  4        PROVISIONS  APPLICABLE  TO  THE MEDICAL COSTS OF STATE PRISONERS HOUSED IN
  5        CORRECTIONAL FACILITIES.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Chapter 2, Title 20, Idaho Code,  be,  and  the  same  is
  8    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  9    ignated as Section 20-237B, Idaho Code, and to read as follows:
                                                                        
 10        20-237B.  MEDICAL COSTS OF STATE PRISONERS HOUSED IN CORRECTIONAL  FACILI-
 11    TIES.  (1)  The state board of correction shall pay to a provider of a medical
 12    service for any and all prisoners confined  in  a  correctional  facility,  as
 13    defined in section 18-101A(1), Idaho Code, an amount no greater than the reim-
 14    bursement rate applicable based on the Idaho medicaid reimbursement rate. This
 15    limitation applies to all medical care services provided outside the facility,
 16    including  hospitalizations,   professional  services,  durable and nondurable
 17    goods, prescription drugs and medications provided to any  and  all  prisoners
 18    confined  in  a correctional facility, as defined in section 18-101A(1), Idaho
 19    Code. For required services that are not included in the Idaho medicaid  reim-
 20    bursement  schedule,  the  state  board of correction shall pay the reasonable
 21    value of such service.
 22        (2)  For the  purposes  of  subsection  (1)  of  this  section,  the  term
 23    "provider  of  a  medical  service" shall include only companies, professional
 24    associations and other health care service entities whose services are  billed
 25    directly to the department of correction. The term "provider of a medical ser-
 26    vice" shall exclude:
 27        (a)  Privatized  correctional  medical  providers  under contract with the
 28        department of correction to provide health care to prison inmates;
 29        (b)  Private prison companies;
 30        (c)  Out-of-state correctional facilities contracting with the  department
 31        of correction to house prisoners;
 32        (d)  County jails; and
 33        (e)  Companies,  professional  associations  and other health care service
 34        entities whose services are provided within the terms of  agreements  with
 35        privatized  correctional medical providers under contract with the depart-
 36        ment of correction, private prison companies and county jails.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE
                          RS 14489

The Department of Correction provides health care to inmates in 
accordance with Eighth Amendment standards that apply to health 
care for prisoners. Currently, said health care services are 
provided via contractual agreements with privatized correctional 
health care companies, private prison companies, county jails 
and entities who have agreements to provide health care services 
to county jails. The contract with the privatized health care 
company accounts for approximately eighty percent of the 
Department’s costs for inmate health care.

The annual cost of providing health care to inmates via the 
contract with the privatized health care company has increased 
during the past four years from approximately nine million 
dollars to thirteen million dollars. The contract requires the 
company to assume all financial risk for providing the required 
health care. The current contract expires September 30, 2005, 
and the Department will issue a new contract, to begin October 
1, 2005. Due to the rapid increase in the cost of health care, 
it is anticipated that to obtain a similar total risk contract, 
the Department’s costs will be much greater than the current 
costs.

To provide maximum cost-efficiency, the Department’s Request for 
Proposal includes four options for prospective vendors to bid: 

1.   Total risk to the vendor. All costs are paid by the vendor.

2.   Total risk to the vendor, with the exception of medications 
     utilized to treat Hepatitis C. These medications cost 
     approximately $15,000 per treatment, and the Department 
     currently houses approximately 570 inmates who have been 
     diagnosed with Hepatitis C. The number of inmates who will 
     eventually qualify for treatment is unknown. 

3.   Catastrophic Care cap.  This option requires the vendor to 
     pay up to $50,000 for hospitalization, specialty care and 
     off-site outpatient care per inmate. All costs above the 
     cap will be paid by the Department of Correction.

4.   Aggregated cap.  This option creates a pool of funds to be 
     used for hospitalizations, emergency services, and off-site 
     care. Terms of the pool are negotiable, and include 
     contributions by the vendor and the Department.

It is anticipated that the final contract will include some form 
of uncontrollable financial risk to the Department. To 
ameliorate the risk, the current legislation is intended to 
limit the Department’s exposure to the same level of risk 
assumed by the State of Idaho for providing health care to 
indigent citizens via Medicaid. Without this legislation, the 
Department’s risk will be an unpredictable variable determined 
unilaterally by the respective health care providers.



                        FISCAL IMPACT

This request will not impact state or local government 
appropriations or expenditures.  There is no impact to the 
General Fund.



CONTACT
Name:	Richard (David) Haas
Agency:	Correction, Dept. of
Phone:	208-658-2130

Statement of Purpose/Fiscal Impact	              S 1036