Print Friendly HOUSE BILL NO. 322 – Approp, H&W, Medical Assistance
HOUSE BILL NO. 322
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H0322.....................................................by APPROPRIATIONS
APPROPRIATIONS - DEPARTMENT OF HEALTH AND WELFARE - MEDICAL ASSISTANCE
SERVICES - Appropriates $1,292,917,400 to the Department of Health and
Welfare for Medical Assistance Services for fiscal year 2008; authorizes
the State Controller to make transfers to the Cooperative Welfare Fund;
reappropriates unexpended and unencumbered fund balances of the Cooperative
Welfare Fund; authorizes expenditure of certain receipts collected as
noncognizable funds; limits the number of full-time equivalent positions to
278.5; authorizes a transfer of certain funds appropriated for trustee and
benefit payments; requests a comprehensive cost-benefit analysis regarding
certain therapeutic foster care, residential and group care programs and
certain residential and outpatient substance abuse treatment; requests a
review of policies concerning rebates for the state pharmaceutical
purchasing plan; authorizes a transfer of funds for the medicaid match for
school-based services; directs the distribution of the funds for employee
compensation; and directs the allocation of salary savings.
03/15 House intro - 1st rdg - to printing
03/16 Rpt prt - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
Rls susp - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
Speaker
NAYS -- None
Absent and excused -- Harwood
Floor Sponsor - Henbest
Title apvd - to Senate
03/20 Senate intro - 1st rdg - to Fin
03/21 Rpt out - rec d/p - to 2nd rdg
03/22 2nd rdg - to 3rd rdg
Rls susp - PASSED - 29-6-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Keough, Little, Lodge, McGee,
McKague, McKenzie, Pearce, Richardson, Schroeder, Siddoway, Stegner
NAYS -- Burkett, Kelly, Langhorst, Malepeai, Stennett, Werk
Absent and excused -- None
Floor Sponsor - Broadsword
Title apvd - to House
03/23 To enrol - Rpt enrol - Sp signed - Pres signed
03/26 To Governor
03/30 Governor signed
Session Law Chapter 304
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 322
BY APPROPRIATIONS COMMITTEE
1 AN ACT
2 APPROPRIATING MONEYS TO THE DEPARTMENT OF HEALTH AND WELFARE FOR MEDICAL
3 ASSISTANCE SERVICES FOR FISCAL YEAR 2008; PROVIDING THAT THE STATE CON-
4 TROLLER SHALL MAKE TRANSFERS FROM THE GENERAL FUND; REAPPROPRIATING CER-
5 TAIN UNEXPENDED AND UNENCUMBERED BALANCES OF MONEYS FOR PROVIDER PAYMENTS;
6 REAPPROPRIATING CERTAIN UNEXPENDED AND UNENCUMBERED BALANCES FOR CERTAIN
7 PROJECTS IN THE MEDICAID ADMINISTRATION AND MEDICAL MANAGEMENT PROGRAM;
8 AUTHORIZING THE EXPENDITURE OF ALL RECEIPTS COLLECTED; LIMITING THE NUMBER
9 OF FULL-TIME EQUIVALENT POSITIONS; AUTHORIZING A TRANSFER OF CERTAIN
10 MONEYS APPROPRIATED FOR TRUSTEE AND BENEFIT PAYMENTS; REQUESTING A COST-
11 BENEFIT ANALYSIS AND FEASIBILITY REVIEW REGARDING THERAPEUTIC CARE PORTION
12 OF THERAPEUTIC FOSTER CARE, RESIDENTIAL AND GROUP CARE PROGRAMS; REQUEST-
13 ING A COST-BENEFIT ANALYSIS AND FEASIBILITY REVIEW REGARDING RESIDENTIAL
14 AND OUTPATIENT SUBSTANCE ABUSE TREATMENT; REQUESTING A REVIEW OF POLICIES
15 AND PROCEDURES REGARDING REBATES FOR THE STATE PHARMACEUTICAL PURCHASING
16 PLANS; AUTHORIZING THE TRANSFER OF FUNDS FOR SCHOOL-BASED SERVICES;
17 DIRECTING THE DISTRIBUTION OF THE FUNDING FOR EMPLOYEE COMPENSATION; AND
18 DIRECTING THE ALLOCATION OF SALARY SAVINGS.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. There is hereby appropriated to the Department of Health and
21 Welfare for Medical Assistance Services the following amounts to be expended
22 according to the designated expense classes from the listed funds for the
23 period July 1, 2007, through June 30, 2008:
24 FOR
25 FOR FOR FOR TRUSTEE AND
26 PERSONNEL OPERATING CAPITAL BENEFIT
27 COSTS EXPENDITURES OUTLAY PAYMENTS TOTAL
28 I. MEDICAID ADMINISTRATION AND MEDICAL MANAGEMENT:
29 FROM:
30 General
31 Fund $ 6,175,700 $ 6,821,800 $173,100 $ 1,311,000 $ 14,481,600
32 Idaho Health
33 Insurance Access
34 Card Fund 70,800 152,000 222,800
35 Cooperative Welfare
36 Fund
37 (Dedicated) 3,383,800 3,383,800
38 Cooperative Welfare
39 Fund
40 (Federal) 11,601,100 22,582,600 122,100 1,638,600 35,944,400
41 TOTAL $17,847,600 $32,940,200 $295,200 $ 2,949,600 $ 54,032,600
42 II. DUAL ELIGIBLE INDIVIDUALS:
43 FROM:
2
1 FOR
2 FOR FOR FOR TRUSTEE AND
3 PERSONNEL OPERATING CAPITAL BENEFIT
4 COSTS EXPENDITURES OUTLAY PAYMENTS TOTAL
5 General
6 Fund $ 63,284,900 $ 63,284,900
7 Cooperative Welfare
8 Fund
9 (Dedicated) 10,676,200 10,676,200
10 Cooperative Welfare
11 Fund
12 (Federal) 131,638,600 131,638,600
13 TOTAL $ 205,599,700 $ 205,599,700
14 III. INDIVIDUALS WITH DISABILITIES:
15 FROM:
16 General
17 Fund $ 163,946,500 $ 163,946,500
18 Idaho Health
19 Insurance Access
20 Card Fund 893,500 893,500
21 Medical Assistance
22 Fund 2,500 2,500
23 Cooperative Welfare
24 Fund
25 (Dedicated) 35,979,600 35,979,600
26 Cooperative Welfare
27 Fund
28 (Federal) 357,524,900 357,524,900
29 TOTAL $ 558,347,000 $ 558,347,000
30 IV. LOW-INCOME CHILDREN AND WORKING-AGE ADULTS:
31 FROM:
32 General
33 Fund $ 134,890,800 $ 134,890,800
34 Idaho Health
35 Insurance Access
36 Card Fund 1,717,400 1,717,400
37 Cooperative Welfare
38 Fund
39 (Dedicated) 37,085,400 37,085,400
40 Cooperative Welfare
41 Fund
42 (Federal) 301,244,500 301,244,500
43 TOTAL $ 474,938,100 $ 474,938,100
44 GRAND
45 TOTAL $17,847,600 $32,940,200 $295,200 $1,241,834,400 $1,292,917,400
46 SECTION 2. GENERAL FUND TRANSFERS. As appropriated, the State Controller
47 shall make transfers from the General Fund to the Cooperative Welfare Fund,
48 periodically, as requested by the director of the Department of Health and
49 Welfare and approved by the Board of Examiners.
50 SECTION 3. REAPPROPRIATION OF THE COOPERATIVE WELFARE FUND. There is
51 hereby reappropriated to the Department of Health and Welfare any unexpended
52 and unencumbered balances in the Cooperative Welfare Fund as appropriated to
3
1 the Dual Eligible Individuals Program, Individuals with Disabilities Program,
2 and Low-Income Children and Working-Age Adults Program for provider payments
3 for fiscal year 2007, to be used for trustee and benefit payments for the
4 period July 1, 2007, through June 30, 2008. The reappropriation shall be com-
5 puted by the Department of Health and Welfare, and for budgeting purposes any
6 General Fund portion of the balance in the Cooperative Welfare Fund shall be
7 identified as part of the General Fund.
8 SECTION 4. REAPPROPRIATION OF THE COOPERATIVE WELFARE FUND. There is
9 hereby reappropriated to the Department of Health and Welfare any unexpended
10 and unencumbered balances in the Cooperative Welfare Fund as originally appro-
11 priated to the Medicaid Administration and Medical Management for fiscal year
12 2007, for the following purposes: to continue the market analysis of rates
13 paid to developmental disability service providers as referred to in Section
14 56-118, Idaho Code, to continue to develop the Medicaid Management Information
15 System (MMIS); and to continue the efforts of the Health Quality Planning Com-
16 mission and the distribution of health technology grants for the period July
17 1, 2007, through June 30, 2008. The reappropriation shall be computed by the
18 Department of Health and Welfare, and for budgeting purposes any General Fund
19 portion of the balance in the Cooperative Welfare Fund shall be identified as
20 part of the General Fund.
21 SECTION 5. EXPENDITURES OF COLLECTED RECEIPTS. Notwithstanding the provi-
22 sions of Section 67-3516(2), Idaho Code, the Department of Health and Welfare
23 is hereby authorized to expend all receipts collected on behalf of the Dual
24 Eligible Individuals Program, Individuals with Disabilities Program, and the
25 Low-Income Children and Working-Age Adults Program, as noncognizable funds for
26 the period July 1, 2007, through June 30, 2008.
27 SECTION 6. FULL-TIME EQUIVALENT POSITIONS. In accordance with Section
28 67-3519, Idaho Code, the Department of Health and Welfare is authorized no
29 more than two hundred seventy-eight and five-tenths (278.5) full-time equiva-
30 lent positions for the Medical Assistance Services Program during the period
31 July 1, 2007, through June 30, 2008. Transfers of full-time equivalent posi-
32 tions between appropriated programs within the department are authorized and
33 shall be reported in the budget prepared for the next fiscal year. Any full-
34 time equivalent positions in excess of the Department of Health and Welfare's
35 total cap may be authorized only by the Governor and promptly reported to the
36 Joint Finance-Appropriations Committee.
37 SECTION 7. TRUSTEE AND BENEFIT PAYMENTS. Notwithstanding the provisions
38 of Section 67-3511, Idaho Code, funding provided for provider payments in the
39 trustee and benefit payments expenditure object code in the budgeted Medical
40 Assistance Services may be transferred in excess of ten percent (10%) between
41 the Dual Eligible Individuals Program, Individuals with Disabilities Program,
42 and Low-Income Children and Working-Age Adults Program, but shall not be
43 transferred to any other budgeted programs or objects within the Department of
44 Health and Welfare during fiscal year 2008.
45 SECTION 8. COST-BENEFIT ANALYSIS. The Department of Health and Welfare is
46 requested to perform a comprehensive cost-benefit analysis and feasibility
47 review of any potential benefits of paying for the therapeutic care portion of
48 therapeutic foster care, residential, and group care programs from the Medic-
49 aid appropriation rather than from the state funded only Children's Mental
50 Health Program. The Department of Health and Welfare shall report the results
4
1 of the review to the Health Care Task Force by November 1, 2007.
2 SECTION 9. COST-BENEFIT ANALYSIS. The Department of Health and Welfare is
3 requested to perform a comprehensive cost-benefit analysis and feasibility
4 review of any potential benefits of paying for residential and outpatient sub-
5 stance abuse treatment for Medicaid eligible clients from the Medicaid appro-
6 priation rather than from the state funded only portion of the Substance Abuse
7 Services Program. The Department of Health and Welfare shall report the
8 results of the review to the Health Care Task Force by November 1, 2007.
9 SECTION 10. STUDY PHARMACEUTICAL REBATES. The Department of Health and
10 Welfare is requested to review current policies and procedures within Medicaid
11 for identifying rebates for the state pharmaceutical purchasing plan, includ-
12 ing the possibility of enhancing collection procedures for federally mandated
13 and supplemental rebates from name brand and generic manufacturers.
14 SECTION 11. SCHOOL-BASED SERVICES MATCH. Notwithstanding the provisions
15 of Sections 33-907, 33-1018, 33-1018A and 33-1018B, Idaho Code, $1,000,000
16 from the Public Education Stabilization Fund shall be transferred to the
17 Health Care Trust Fund and remain in the state treasury to be used as the
18 required Medicaid match for school-based services to benefit the school dis-
19 tricts.
20 SECTION 12. SALARY DISTRIBUTION. Agencies and institutions shall distrib-
21 ute the funding for employee compensation based on merit as follows:
22 (a) Agencies and institutions are directed to, based on merit, target
23 funding first toward high turnover classifications and individuals below
24 midpoint within their agency.
25 (b) Agencies and institutions are directed to, based on merit, target
26 funding second toward positions within their agency that are below ninety
27 percent (90%) of the Compa-Ratio.
28 (c) Agencies and institutions are directed to target any remaining fund-
29 ing based on merit using the merit matrix required by Idaho Code.
30 Agencies and institutions shall create compensation and distribution plans to
31 ensure that they are consistent with the policies contained herein. Agency
32 directors and institutional presidents shall approve all compensation and dis-
33 tribution plans and ensure that implementation of the plans is consistent with
34 policies contained herein. Each agency and institution shall forward, for
35 informational purposes, approved copies of the compensation and distribution
36 plans to the Legislative Services Office and the Division of Financial Manage-
37 ment by June 1, 2007. The effective date of implementation of ongoing salary
38 adjustments shall be June 17, 2007.
39 SECTION 13. SALARY SAVINGS. The Department of Health and Welfare is
40 hereby directed to allocate salary savings, based on performance, to provide
41 for employee salary needs before other operational budget priorities are con-
42 sidered. Where applicable, employees whose salaries are below the midpoint of
43 their pay grade or occupational groups with significant turnover rates shall
44 be considered first in the order of salary savings distributions.
| Statement of Purpose |
| RS16398 |
This is the FY 2008 appropriation for Medical Assistance Services Division also commonly referred to as Medicaid. This budgeted division is comprised of four programs: Medicaid Administration and Medical Management, Dual Eligible Individuals, Individuals with Disabilities, and Low-Income Children and Working-Age Adults.
 
| FY 2007 Original Appropriation |
287.50 |
357,268,900 |
81,754,700 |
807,638,900 |
1,246,662,500 |
| Reappropriations |
0.00 |
6,595,000 |
0 |
0 |
6,595,000 |
| 2. CMS Audit of State Medicaid Programs |
0.00 |
853,100 |
0 |
(853,100) |
0 |
| 4. HIPPA National Provider ID |
0.00 |
301,600 |
0 |
2,714,400 |
3,016,000 |
| Rescissions |
0.00 |
(13,661,400) |
0 |
(31,876,500) |
(45,537,900) |
| FY 2007 Total Appropriation |
287.50 |
351,357,200 |
81,754,700 |
777,623,700 |
1,210,735,600 |
| Non-Cognizable Funds and Transfers |
(9.00) |
(310,100) |
(65,400) |
(245,300) |
(620,800) |
| FY 2007 Estimated Expenditures |
278.50 |
351,047,100 |
81,689,300 |
777,378,400 |
1,210,114,800 |
| Removal of One-Time Expenditures |
(8.00) |
(7,096,600) |
(1,561,300) |
(10,493,300) |
(19,151,200) |
| Base Adjustments |
0.00 |
(601,300) |
0 |
0 |
(601,300) |
| FY 2008 Base |
270.50 |
343,349,200 |
80,128,000 |
766,885,100 |
1,190,362,300 |
| Benefit Costs |
0.00 |
45,600 |
0 |
84,600 |
130,200 |
| Inflationary Adjustments |
0.00 |
2,500 |
2,000,000 |
2,500 |
2,005,000 |
| Replacement Items |
0.00 |
161,700 |
0 |
110,700 |
272,400 |
| Change in Employee Compensation |
0.00 |
287,800 |
0 |
479,000 |
766,800 |
| Nondiscretionary Adjustments |
0.00 |
32,352,700 |
7,833,200 |
51,278,200 |
91,464,100 |
| FY 2008 Program Maintenance |
270.50 |
376,199,500 |
89,961,200 |
818,840,100 |
1,285,000,800 |
| Enhancements |
|
|
|
|
|
| 2. MMIS Reprocurement |
8.00 |
440,400 |
0 |
7,548,400 |
7,988,800 |
| 7. Mental Hlth Assessment Pilot Program |
0.00 |
0 |
0 |
0 |
0 |
| 35. Benefits to Medicaid Fraud |
0.00 |
0 |
0 |
0 |
0 |
| 37. Casualty Recovery-Add’l DAGs |
0.00 |
(36,100) |
0 |
(36,100) |
(72,200) |
| 50. School-Based Services Match |
0.00 |
0 |
1,000,000 |
0 |
1,000,000 |
| FY 2008 Total |
278.50 |
376,603,800 |
90,961,200 |
826,352,400 |
1,293,917,400 |
| Chg from FY 2007 Orig Approp |
(9.00) |
19,334,900 |
9,206,500 |
18,713,500 |
47,254,900 |
| % Chg from FY 2007 Orig Approp. |
(3.1%) |
5.4% |
11.3% |
2.3% |
3.8% |
Contact: Cathy Holland-Smith 334-4731
Legislative Services Office, Budget & Policy Analysis
| Statement of Purpose/Fiscal Note |
Bill No. H322 |