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HB 152: "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 BILL NO. 152 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 AS 47.07.070 is repealed and reenacted to read: 06 Sec. 47.07.070.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 a rate of payment to a health facility 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). A rate established under this section takes effect 10 under AS 44.62 (Administrative Procedure Act) but not until approved in writing by 11 the commissioner. The commissioner may delegate the performance of these 12 functions. 13 (b) In determining a rate of payment to a health facility under this section, the 14 department shall consider the appropriations made by the legislature for the

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

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