HB-5934, As Passed House, June 12, 2018

HB-5934, As Passed Senate, June 12, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5934

 

 

(as amended June 12, 2018)

 

May 8, 2018, Introduced by Reps. Canfield, McCready, Inman, Howrylak, Cole, Allor, Maturen, LaFave, Hauck, Dianda, Cambensy, Wentworth, Rendon, Glenn, VanderWall and Chatfield and referred to the Committee on Appropriations.

 

     A bill to amend 1939 PA 280, entitled

 

"The social welfare act,"

 

(MCL 400.1 to 400.119b) by adding section 110a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 110a. (1) Beginning in the fiscal year that ends

 

September 30, 2019, and annually after that, the department shall

 

allocate not less than $26,000,000.00 of its general fund

 

appropriation to a rural hospital access pool to assist sole

 

community hospitals, critical access hospitals, and rural hospitals

 

with providing services to low-income residents.

 

     (2) All of the following apply to a payment from the rural

 

hospital access pool:

 

     (a) <<$7,978,300.00>> shall be proportionately

 divided annually

 

among sole community hospitals and rural hospitals that provide

 

obstetrical care to Medicaid beneficiaries, based on the proportion

 


of Medicaid deliveries performed during the second immediately

 

preceding fiscal year.

 

     (b) The balance remaining in the rural hospital access pool

 

after distribution made under subdivision (a) shall be annually

 

allocated as follows:

 

     (i) Payments shall first be allocated to reimburse sole

 

community hospitals, critical access hospitals, and rural hospitals

 

for unreimbursed and incurred costs for services delivered to fee

 

for service inpatient and outpatient Medicaid beneficiaries as

 

reported during the second immediately preceding fiscal year cost

 

reporting period.

 

     (ii) Money remaining in the rural hospital access pool after

 

all distributions are made under subparagraph (i) shall be

 

allocated based on each sole community hospital's, critical access

 

hospital's, and rural hospital's proportion of Medicaid managed

 

care outpatient payments for services performed during the second

 

immediately preceding fiscal year.

 

     (c) Notwithstanding subdivisions (a) and (b), no hospital

 

shall receive more than 10% of the total funding available under

 

the rural hospital access pool in any 1 fiscal year.

 

     (3) The department must implement this section in a manner

 

that complies with all federal requirements necessary to ensure the

 

maximum amount of federal matching funds is obtained.

 

     (4) As used in this section:

 

     (a) "Critical access hospital" means a hospital designated and

 

certified as a critical access hospital under 42 CFR 485.606.

 

     (b) "Medicaid" means the medical assistance administered by


the department under this act.

 

     (c) "Rural hospital" means a hospital that meets both of the

 

following:

 

     (i) Has 50 or fewer staffed beds.

 

     (ii) Is located within a county with a population of not more

 

than 165,000 and within a city, village, or township with a

 

population of not more than 15,000 based on the 2010 federal

 

decennial census.

 

     (d) "Sole community hospital" means a hospital classified as a

 

sole community hospital under 42 CFR 412.92.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.