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SB 364: "An Act relating to liability for expenses of placement in certain mental health facilities; relating to the mental health treatment assistance program; and providing for an effective date."

00 SENATE BILL NO. 364 01 "An Act relating to liability for expenses of placement in certain mental health facilities; 02 relating to the mental health treatment assistance program; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 47.30.910(a) is amended to read: 06 (a) A patient, the patient's spouse, or the patient's parent if the patient is under 07 18 years of age shall pay the charges for the care, transportation, and treatment of the 08 patient when the patient is hospitalized under AS 47.30.670 - 47.30.915 at a state- 09 operated facility, an evaluation facility, or a designated treatment facility providing 10 services under AS 47.30.670 - 47.30.915. The patient, the patient's spouse, or the 11 patient's parent if the patient is under 18 years of age shall make arrangements with a 12 state-operated facility, an evaluation facility, or a designated treatment facility for 13 payment of charges, including providing income information necessary to determine 14 eligibility for benefits under AS 47.31. Charges assessed for services provided under

01 AS 47.30.670 - 47.30.915 when a patient is hospitalized at a state-operated facility 02 may not exceed the actual cost of care and treatment. The department may, when 03 assessing charges for services provided at a state-operated facility, consider the ability 04 to pay of a patient, a patient's spouse, or a patient's parent if the patient is under 18 05 years of age. In order to impose liability for a patient's cost of care at a state-operated 06 facility, the department shall issue an order for payment within six months after the 07 date on which the charge was incurred. The order remains in effect unless modified 08 by subsequent court order or department order. The department may not impose 09 liability for a patient's cost of care at a state-operated facility if the patient would be 10 eligible for financial assistance under [OTHERWISE MEET THE ELIGIBILITY 11 CRITERIA, OTHER THAN LOCATION OF SERVICE, IN] AS 47.31.010 if the 12 care was provided by an evaluation facility or a designated treatment facility. 13 * Sec. 2. AS 47.31 is amended by adding a new section to read: 14 Sec. 47.31.007. Limitation on financial assistance and appeals due to lack 15 of appropriations; notification. (a) Notwithstanding any contrary provision of this 16 chapter, financial assistance under this chapter is subject to appropriation by the 17 legislature. Nothing in this chapter creates an entitlement to financial assistance under 18 this chapter. Notwithstanding any contrary provision of this chapter, a denial of 19 financial assistance under this chapter due to lack of appropriations is not appealable 20 under AS 47.31.035. 21 (b) If the department projects, based on registrations, that the need for 22 financial assistance under this chapter will exceed the amount of appropriations made 23 for financial assistance under this chapter, the department shall post notification of the 24 projection on the department's Internet website and provide electronic notice to 25 evaluation facilities and designated treatment facilities that have previously served 26 patients who received assistance under this chapter. 27 * Sec. 3. AS 47.31.010 is amended to read: 28 Sec. 47.31.010. Eligibility for assistance. (a) The department may [SHALL] 29 provide financial assistance under this chapter to a patient who 30 (1) does not have the available means to pay or substantially contribute 31 to the payment of charges assessed by a facility;

01 (2) has no insurance or other third-party resources, including 02 Medicaid or Medicare, [THIRD PARTY] to pay for the evaluation or treatment 03 provided under AS 47.30; [AND] 04 (3) has been registered under AS 47.37.012; and 05 (4) meets the criteria in this chapter. 06 (b) To be eligible for assistance under this chapter, a patient must have 07 (1) been admitted for inpatient evaluation or treatment at an evaluation 08 facility or a designated treatment facility other than a state-operated hospital after 09 either 10 (A) an involuntary commitment under AS 47.30.700 - 11 47.30.915; or 12 (B) a voluntary admission chosen by the patient after a 13 determination by the patient's treating physician that the patient meets the 14 involuntary commitment criteria in AS 47.30.700 - 47.30.915 and that 15 involuntary commitment proceedings would be initiated if the patient did not 16 choose to be admitted voluntarily; [AND] 17 (2) a gross monthly household income that does not exceed 185 18 percent of the federal poverty guideline for this state for the calendar month in which 19 service was provided; 20 (3) no insurance or other third-party resources, including 21 Medicaid or Medicare, to pay for the cost of evaluation or treatment; 22 (4) been timely registered in accordance with AS 47.31.012; and 23 (5) not become eligible for discharge in accordance with 24 AS 47.30.780 during the period for which financial assistance is requested. 25 * Sec. 4. AS 47.31 is amended by adding a new section to read: 26 Sec. 47.31.012. Registration of eligibility for assistance. (a) 27 Notwithstanding any contrary provision of this chapter, the department may not 28 provide financial assistance under this chapter unless the patient has been registered 29 under this chapter. The registration must be received by the department within 24 30 hours after the patient's admission to the facility. The registration may be made by 31 telephone call, electronic message, or other means approved by the department. In

01 order to register, information specified by the department by regulation must be 02 supplied to demonstrate the patient's eligibility for assistance. 03 (b) Registration under (a) of this section must be made for each admission. 04 (c) Following registration for each admission, a complete application for 05 assistance must be submitted in accordance with AS 47.31.015 and evaluated by the 06 department for eligibility under this chapter. 07 * Sec. 5. AS 47.31.015(a) is amended to read: 08 (a) To receive assistance under this chapter, a patient or a patient's legal 09 representative must apply in writing on a form provided by the department. A patient 10 must apply for assistance within 90 [180] days after the date of admission to 11 [DISCHARGE FROM] the facility. 12 * Sec. 6. AS 47.31.015(b) is amended to read: 13 (b) A patient is considered to have applied for assistance under (a) of this 14 section if the evaluation facility or designated treatment facility notifies the 15 department on a form provided by the department that there is good cause to believe 16 that the patient would be eligible for assistance under this chapter and 17 (1) the patient, the patient's spouse, or the patient's parent if the patient 18 is under 18 years of age failed within 60 [150] days after the date of admission to 19 [DISCHARGE FROM] the facility to make arrangements to pay the evaluation facility 20 or designated treatment facility; or 21 (2) the patient lacks the mental capacity to apply for benefits under this 22 chapter. 23 * Sec. 7. AS 47.31.025 is amended by adding a new subsection to read: 24 (b) Notwithstanding (a) of this section, if the department determines that the 25 amount of appropriations made for financial assistance under this chapter is less than 26 the projected need for financial assistance under this chapter, and the department has 27 given notice under AS 47.31.007(b), the department may reduce the rates calculated 28 under (a) of this section by the percentage of the shortfall. 29 * Sec. 8. AS 47.31.035(a) is amended read: 30 (a) Except as provided in (d) of this section, a [A] patient or the patient's 31 legal representative may appeal a denial of assistance by sending written notice of

01 objection to the department within 30 days after the date of the notice of denial. The 02 written notice of objection must include an explanation of the reasons for the objection 03 and may include documentation supporting the objection. AS 44.62 (Administrative 04 Procedure Act) does not apply to the appeal. 05 * Sec. 9. AS 47.31.035 is amended by adding a new subsection to read: 06 (d) A denial or reduction of assistance under this chapter due to insufficient 07 appropriations for financial assistance under this chapter may not be appealed under 08 this section. 09 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. The provisions of this Act do not apply to applications for 12 assistance under AS 47.31 for admissions occurring on or before the effective date of secs. 1 - 13 9 of this Act. 14 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION: REGULATIONS. The Department of Health and Social Services 17 may proceed to adopt regulations necessary to implement the changes made by this Act. The 18 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 19 effective date of the respective statutory change. 20 * Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 21 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2004.