SCS/SB 578 - This act revises the Hospital Federal Reimbursement Allowance Program. Section 208.471, RSMo, currently requires the Department of Social Services to make payments to Medicaid provider hospitals. New language provides that prior to June 30, 2002, the payment must be in an annual amount. A new subsection 4 is added to provide for reimbursement to hospitals and clinics associated with land grant universities equal to that of other hospitals in the state. (SA 1)

Beginning July 1, 2002, Sections 208.453 through 208.480 shall expire 180 days after the end of any fiscal year in which the aggregate federal reimbursement allowance on hospitals is more than eighty-five percent of the sum of direct Medicaid payments. Uninsured add-on payments and graduate medical education payments must be adjusted to comply with the percentage, unless made during the 180 day period. Direct Medicaid payments, uninsured add-on payments, and enhanced graduate medical education payments are specifically outlined.

The Division of Medical Services may currently provide alternative reimbursement for outpatient services. New language allows this reimbursement to include but not be limited to payments to clinics serving low-income, uninsured patients. Section 208.480 provides that Sections 208.453 through 208.480 will expire on September 30, 2004.

This act is similar to HB 955 (2001).
ERIN MOTLEY