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HCS SB 108(FIN): "An Act relating to payment rates under the Medicaid program for health facilities and to budgeting, accounting, and reporting requirements for those facilities; abolishing the Medicaid Rate Advisory Commission; and providing for an effective date."

00 HOUSE CS FOR SENATE BILL NO. 108(FIN) 01 "An Act relating to payment rates under the Medicaid program for health facilities and 02 to budgeting, accounting, and reporting requirements for those facilities; abolishing the 03 Medicaid Rate Advisory Commission; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 47.07.070 is repealed and reenacted to read: 06 Sec. 47.07.070. Payment rates for health facilities. (a) The department 07 shall, by regulation, set rates of payment for health facilities under this chapter and 08 AS 47.25.120 - 47.25.300 in accordance with 42 U.S.C. 1396 (Title XIX, Social 09 Security Act, Medical Assistance) and this section. A rate established under this 10 section takes effect under AS 44.62 (Administrative Procedure Act) but not until 11 approved in writing by the commissioner. The commissioner may delegate the 12 performance of these functions. 13 (b) In determining the rates of payment for health facilities for a fiscal year, 14 the department shall, within the limit of appropriations made by the legislature for the

01 department's programs under this chapter and under AS 47.25.120 - 47.25.300 for that 02 fiscal year, including anticipated available federal revenue for that fiscal year, set rates 03 for facilities that are based on 04 (1) reasonable costs related to patient care; and 05 (2) audit and inspection results and reports, when the audit or 06 inspection is conducted under AS 47.07.074. 07 (c) This section does not apply to the minimum daily reimbursement rate 08 specified by law under AS 47.24.017 or AS 47.25.195(e) for assisted living homes. 09 * Sec. 2. AS 47.07.073(a) is amended to read: 10 (a) The department by regulation shall require a uniform system of 11 accounting, budgeting, and [FINANCIAL] reporting for health facilities receiving 12 [PROSPECTIVE] payments under this chapter. The regulations must provide for 13 reporting revenues, expenses, assets, liabilities, [AND] units of service, and other 14 items considered necessary by the department to implement this chapter. [THE 15 DEPARTMENT SHALL SPECIFY THE DATE THE SYSTEM BECOMES 16 EFFECTIVE FOR EACH HEALTH FACILITY.] 17 * Sec. 3. AS 47.07.073(c) is amended to read: 18 (c) The department may waive or modify a requirement for accounting, 19 budgeting, or [FINANCIAL] reporting for a health facility if waiver or modification is 20 [(1) NECESSARY TO AVOID EXCESSIVE COSTS TO THE 21 FACILITY; AND 22 (2)] consistent with the policies of this chapter. 23 * Sec. 4. AS 47.07.073(d) is amended to read: 24 (d) Notwithstanding other provisions of this section, the department may, by 25 regulation, modify the system of accounting, budgeting, and [FINANCIAL] reporting 26 required under this section for a health facility having fewer than 25 acute care beds in 27 order to reduce the operating costs of that facility. 28 * Sec. 5. AS 47.07.074(a) is amended to read: 29 (a) As a condition of obtaining payment under AS 47.07.070, a health facility 30 shall allow 31 (1) the department [AND THE COMMISSION] reasonable access to

01 the financial records of medical assistance beneficiaries; and 02 (2) audit and inspection of financial records by state and federal 03 agencies. 04 * Sec. 6. AS 39.25.110(23); AS 47.07.073(b), 47.07.110, 47.07.120, 47.07.130, 47.07.140, 05 47.07.150, 47.07.160, 47.07.170, 47.07.180, 47.07.190, and 47.07.900(6) are repealed. 06 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 REGULATIONS. To the extent that regulations in effect under AS 47.07.070 on 09 June 30, 2003, do not conflict with the requirements applicable under AS 47.07.070, as 10 amended by sec. 1 of this Act, the regulations need not be readopted in order to comply with 11 this Act. 12 * Sec. 8. This Act takes effect July 1, 2003.