SB 189 Extends certain federal reimbursement allowance and requires Medicaid managed care organizations to pay a reimbursement allowance
Sponsor: Gross
LR Number: 1021L.02T Fiscal Note: 1021-02
Committee: Ways & Means
Last Action: 5/13/2005 - Signed by Governor (w/EC) Journal Page: S1358
Title: HCS SB 189 Calendar Position:
Effective Date: Emergency Clause
House Handler: Icet

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Current Bill Summary


HCS/SB 189 - This act extends the sunset on the pharmacy providers tax, the hospital federal reimbursement allowance, and the nursing home federal reimbursement allowance by one year. Currently, each is set to expire in 2005.

Beginning July 1, 2005, each Medicaid managed care organization in this state must pay, in addition to all other fees or taxes required by law, a Medicaid managed care organization reimbursement based on a formula set forth in rules promulgated by the Department of Social Services. No reimbursement allowance will be collected in the event the federal center for medicaid and medicaid services determines that such reimbursement allowance is not authorized under title XIX of the Social Security Act.

The act provides record retention and reporting requirements for medicaid managed care organizations. The director of the Department of Social Services will make a determination as to the amount of reimbursement allowance due from each Medicaid managed care organization and notify each organization of the amount due. Reimbursement allowance amounts due may be offset if requested by the organization. Reimbursement allowances will be paid to the department of social services to be deposited into the Medicaid Managed Care Organizations Allowance Fund created in this act.

The act contains provisions relating to unpaid and delinquent payments and the Department of Social Services ability to compel payment. The director of the Department of Social Services may deny, suspend or revoke a medicaid managed care organization which fails to pay a managed care organization's delinquent reimbursement allowance unless under appeal.

This act contains an emergency clause.

JASON ZAMKUS