ARTICLE 22 SUBSTITUTE A AS AMENDED

 

RELATING TO CENTERS FOR MEDICARE AND MEDICAID SERVICES WAIVER AND EXPENDITURE AUTHORITY

 

     SECTION 1. Chapter 42-12.4 of the General Laws entitled "The Rhode Island Medicaid

Reform Act of 2008" is hereby amended by adding thereto the following sections:

 

     42-12.4-7. Demonstration implementation - Restrictions. -- The executive office of

health and human services and the department of human services may implement the global

consumer choice section 1115 demonstration ("the demonstration"), project number 11W-

00242/1, subject to the following restrictions:

      (1) Notwithstanding the provisions of the demonstration, any change that requires the

implementation of a rule or regulation or modification of a rule or regulation in existence prior to

the demonstration shall require prior approval of the general assembly;

     (2) Notwithstanding the provisions of the demonstration, any Category II change or

Category III change, as defined in the demonstration, shall require the prior approval of the

general assembly.

 

     42-12.4-8. Demonstration termination. -- In the event the demonstration is suspended

or terminated for any reason, or in the event that the demonstration expires, the department of

human services, in conjunction with the executive office of health and human services, is directed

and authorized to apply for and obtain all waivers in existence prior to the acceptance of the

demonstration. The department of human services and the executive office of health and human

services to the extent possible shall ensure that said waivers are reinstated prior to any

suspension, termination, or expiration of the demonstration.

 

     42-12.4-9. Demonstration implementation taskforce. -- (a) Purpose. The general

assembly is committed to a public participatory process to implement Medicaid reform through

the demonstration. To assure such a process, following final acceptance of the demonstration by

the state, the executive office of health and human service and the department of human services

shall establish a demonstration implementation taskforce. The taskforce shall work

collaboratively with the executive office of health and human services and the department of

human services to plan, design, and implement changes to the Medicaid program under the

demonstration and to evaluate the impact of such changes and of the demonstration.

     (b) Chair. The taskforce shall be co-chaired by a senior state official of EOHHS/DHS and

a member of the community who is knowledgeable about the Medicaid program and the

populations and services it funds in Rhode Island as well as with the provisions of the

demonstration.

     (c) Taskforce composition. There are distinct populations that receive services funded

through the Medicaid program including: children and youth with special health care needs,

adults and children with developmental disabilities, adults with serious and persistent mental

illness and/or addiction disorders and children with severe emotional disturbance, adults with

disabilities, adults age sixty-five (65) and older and low-income children and families. It is the

intent of the general assembly that the taskforce includes members who are knowledgeable about

the needs of these populations and the services currently provided to them.

     Members of the taskforce shall be appointed by director of the department of human

services. The membership shall include: for each distinct population two (2) consumers or family

members of consumers, one member of an advocacy organization and one member of a policy

organization; a representative from organizations that either provide or represent entities that

provide services to Medicaid beneficiaries including, but not limited to, health plans, hospitals

community health centers, community mental health organizations, licensed substance abuse

treatment providers, licensed health care practitioners, nursing facilities, and home and

community-based service providers.

     Total membership shall not exceed forty-five (45) individuals. The executive office of

health and human services/department of human services shall provide necessary staff support to

effectively operate the taskforce.

     (d) Duration. The taskforce shall remain in effect so long as the demonstration is in

effect.

     (e) Meeting frequency and relationship to the permanent joint committee of the

demonstration compact:

     The taskforce shall meet no less than monthly and shall report on its activities to the

permanent joint committee of the global waiver compact established pursuant to section 42-12.4-

5. The permanent joint committee of the global waiver compact shall appoint a member to serve

as a liaison to the taskforce.

 

     SECTION 2. Section 40-8.4-19 of the General Laws in Chapter 40-8.4 entitled "Health

Care For Families" is hereby amended to read as follows:

 

     40-8.4-19. Managed health care delivery systems for families. -- (a) Notwithstanding

any other provision of state law, the delivery and financing of the health care services provided

under this chapter shall be provided through a system of managed care. "Managed care" is

defined as systems that: integrate an efficient financing mechanism with quality service delivery;

provide a "medical home" to assure appropriate care and deter unnecessary services; and place

emphasis on preventive and primary care. For the purposes of Medical Assistance, managed care

systems are defined to include a primary care case management model in which ancillary services

are provided under the direction of a physician in a practice that meets standards established by

the department of human services, including standards pertaining to certification as an "advanced

medical home".

      (b) Enrollment in managed care health delivery systems is mandatory for individuals

eligible for medical assistance under this chapter. This includes children in substitute care,

children receiving Medical Assistance through an adoption subsidy, and children eligible for

medical assistance based on their disability. Beneficiaries with third-party medical coverage or

insurance may be exempt from mandatory managed care in accordance with rules and regulations

promulgated by the department of human services for such purposes.

      (c) Individuals who can afford to contribute shall share in the cost. - The department of

human services is authorized and directed to apply for and obtain any necessary waivers and/or

state plan amendments from the secretary of the U.S. department of health and human services,

including, but not limited to, a waiver of the appropriate sections of Title XIX, 42 U.S.C. section

1396 et seq., to require that beneficiaries eligible under this chapter or chapter 12.3 of title 42,

with incomes equal to or greater than one hundred thirty-three percent (133%) one hundred fifty

percent (150%) of the federal poverty level, pay a share of the costs of health coverage based on

the ability to pay. The department of human services shall implement this cost-sharing obligation

by regulation, and shall consider co-payments, premium shares, or other reasonable means to do

so in accordance with approved provisions of appropriate waivers and/or state plan amendments

approved by the secretary of the United States department of health and human services.

      (d) All children and families receiving Medical Assistance under title 40 of the Rhode

Island general laws shall also be subject to co-payments for certain medical services as approved

in the waiver and/or the applicable state plan amendment, and in accordance with rules and

regulations promulgated by the department.

      (e) The department of human services may provide health benefits, similar to those

available through commercial health plans, to parents or relative caretakers with an income above

one hundred percent (100%) of the federal poverty level who are not receiving cash assistance

under the Rhode Island Temporary Assistance to Needy Families (TANF program).

      (f) The department of human services is authorized to create consumer directed health

care accounts, including but not limited to health opportunity accounts or health savings accounts,

in order to increase and encourage personal responsibility, wellness and healthy decision-making,

disease management, and to provide tangible incentives for beneficiaries who meet designated

wellness initiatives.

 

     SECTION 3. Section 40-8.5-1.1 of the General Laws in Chapter 40-8.5 entitled "Health

Care for Elderly and Disabled Residents Act" is hereby amended to read as follows:

 

     40-8.5-1.1. Managed health care delivery systems. -- (a) To ensure that all medical

assistance beneficiaries, including the elderly and all individuals with disabilities, have access to

quality and affordable health care, the department of human services is authorized to implement

mandatory managed care health systems.

      (b) "Managed care" is defined as systems that: integrate an efficient financing

mechanism with quality service delivery; provides a "medical home" to assure appropriate care

and deter unnecessary services; and place emphasis on preventive and primary care. For purposes

of Medical Assistance, managed care systems are also defined to include a primary care case

management model in which ancillary services are provided under the direction of a physician in

a practice that meets standards established by the department of human services. Those medical

assistance recipients who have third-party medical coverage or insurance may be exempt from

mandatory managed care in accordance with rules and regulations promulgated by the department

of human services. The department is further authorized to redesign benefit packages for medical

assistance beneficiaries subject to appropriate federal approval.

      (c) The department is authorized to obtain any approval through waiver(s) and/or state

plan amendments, from the secretary of the United States department of health and human

services, that are necessary to implement mandatory managed health care delivery systems for all

medical assistance recipients, including the primary case management model in which ancillary

services are provided under the direction of a physician in a practice that meets standards

established by the department of human services. The waiver(s) and/or state plan amendments

shall include the authorization to exempt beneficiaries with third-party medical coverage or

insurance from mandatory managed care in accordance with rules and regulations promulgated by

the department of human services. The department may also redesign benefit packages for

medical assistance beneficiaries in accordance with rules and regulations promulgated by the

department.

      (d) To ensure the delivery of timely and appropriate services to persons who become

eligible for Medicaid by virtue of their eligibility for a U.S. social security administration

program, the department of human services is authorized to seek any and all data sharing

agreements or other agreements with the social security administration as may be necessary to

receive timely and accurate diagnostic data and clinical assessments. Such information shall be

used exclusively for the purpose of service planning, and shall be held and exchanged in

accordance with all applicable state and federal medical record confidentiality laws and

regulations.

      (e) The department of human services and/or the executive office of health and human

services is authorized and directed to apply for and obtain any necessary waiver(s) and/or state

plan amendments from the secretary of the United States department of health and human

services, including, but not limited to, a waiver of the appropriate sections of law for the purpose

of administering and implementing the goals of the Medicaid Reform Act 2008 as described in

section 42-7.2-16 of the Rhode Island general laws, specifically using competitive value-based

purchasing to maximize the available service options and to promote accountability and

transparency in the delivery of services for all Medical Assistance beneficiaries.

 

     SECTION 4. Section 40-8-29 of the General Laws in Chapter 40-8 entitled "Medical

Assistance" is hereby amended to read as follows:

 

     40-8-29. Selective contracting. -- (a) Notwithstanding any other provision of state law,

the department of human services is authorized to utilize selective contracting with prior general

assembly approval to assure that all service expenditures under this chapter have the maximum

benefit of competition, and afford Rhode Islanders the overall best value, optimal quality, and the

most cost-effective care possible. Beneficiaries will be limited to using the services/products of

only those providers determined in a competitive bidding process to meet the standards for best

quality, performance and price set by the department in accordance with applicable federal and

state laws.

      (b) Any approved medical assistance provider who declines to participate in contracting

for benefits in any one of the department's medical assistance programs, including, but not limited

to any and all managed care programs, may be suspended as a participating provider and denied

participation in all state operated medical assistance programs at the discretion of the department.

     (b) For purposes of this section "selective contracting" shall mean the process for

choosing providers to serve Medicaid beneficiaries based on their ability to deliver the best

quality products or services, at the best value or price.

     (c) To ensure all services allowable for Medicare reimbursement for beneficiaries who

are dually eligible, selective contractors must be willing and able to accept Medicare.

 

     SECTION 5. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby

amended by adding thereto the following section:

 

     40-8-30. Suspension of participating providers. -- Any approved medical assistance

provider who declines to participate in contracting for benefits in any one of the department's

medical assistance programs, including, but not limited to, any and all managed care programs,

may be suspended as a participating provider and denied participation in all state operated

medical assistance programs at the discretion of the department. Prior to suspension, a

participating provider shall have the right to appeal such suspension to a state administrative

hearing officer, in accordance with the rules of the department of human services.

 

     SECTION 6. Section 40-8.9-9 of the General Laws in Chapter 40-8.9 entitled "Medical

Assistance - Long-Term Care Service and Finance Reform" is hereby amended to read as

follows:

 

     40-8.9-9. Long-term care re-balancing system reform goal. -- (a) Notwithstanding any

other provision of state law, the department of human services is authorized and directed to apply

for and obtain any necessary waiver(s), waiver amendment(s) and/or state plan amendments from

the secretary of the United States department of health and human services, and to promulgate

rules necessary to adopt an affirmative plan of program design and implementation that addresses

the goal of allocating a minimum of fifty percent (50%) of Medicaid long-term care funding for

persons aged sixty-five (65) and over and adults with disabilities in addition to services for

persons with developmental disabilities and mental disabilities to home and community-based

care on or before December 31, 2012 2013; provided, further, the executive office of health and

human services shall report annually as part of its budget submission, the percentage distribution

between institutional care and home and community-based care by population and shall report

current and projected waiting lists for long-term care and home and community-based care

services. The department is further authorized and directed to prioritize investments in home and

community-based care and to maintain the integrity and financial viability of all current long-

term care services while pursuing this goal.

      (b) The long-term care re-balancing goal is person-centered and encourages individual

self-determination, family involvement, interagency collaboration, and individual choice through

the provision of highly specialized and individually tailored home-based services. Additionally,

individuals with severe behavioral, physical, or developmental disabilities must have the

opportunity to live safe and healthful lives through access to a wide range of supportive services

in an array of community-based settings, regardless of the complexity of their medical condition,

the severity of their disability, or the challenges of their behavior. Delivery of services and

supports in less costly and less restrictive community settings, will enable children, adolescents

and adults to be able to curtail, delay or avoid lengthy stays in residential treatment facilities,

juvenile detention centers, psychiatric facilities, and/or intermediate care or skilled nursing

facilities.

      (c) Pursuant to federal authority procured under section 42-7.2-16 of the general laws,

the department of human services is directed and authorized to adopt a tiered set of criteria to be

used to determine eligibility for services. Such criteria shall be developed in collaboration with

the state's health and human services departments and shall encompass eligibility determinations

for services in nursing facilities, hospitals, and intermediate care facilities for the mentally

retarded as well as home and community-based alternatives, and shall provide a common

standard of income eligibility for both institutional and home and community-based care. The

department is, subject to prior approval of the general assembly, authorized to adopt criteria for

admission to a nursing facility, hospital, or intermediate care facility for the mentally retarded that

are more stringent than those employed for access to home and community-based services. The

department is also authorized to promulgate rules that define the frequency of re-assessments for

services provided for under this section. Legislatively approved levels of care may be applied in

accordance with the following:

     (1) Any Medicaid recipient deemed eligible for nursing facility, hospital, or intermediate

care facility for the mentally retarded as of January 15, 2009, shall continue, throughout that

individual's life, to be assessed utilizing the level of care criteria in place for that care as of

January 15, 2009;

     (2) Any Medicaid recipient deemed eligible for home and community services prior to

January 15, 2009, shall continue to be assessed for that care utilizing the level of care criteria in

place as of January 15, 2009;

     (3) Persons meeting or who would have met the level of care criteria for nursing facility

care as of January 15, 2009, shall continue to be deemed to meet the institutional level of care and

shall only be transitioned to home and community services on a voluntary basis, and shall not be

subject to any wait list for home and community services; and

     (4) No resident of a nursing facility, hospital, or intermediate care facility for the

mentally retarded shall be removed involuntarily from said facility even if the condition of the

resident improves.

     (5) No nursing home, hospital, or intermediate care facility for the mentally retarded shall

be denied payment for services rendered to a Medicaid recipient on the grounds that the recipient

does not meet level of care criteria unless and until the department of human services has: (i)

performed an individual assessment of the recipient at issue and provided written notice to the

nursing home, hospital, or intermediate care facility for the mentally retarded that the recipient

does not meet level of care criteria; and (ii) the recipient has either appealed that level of care

determination and been unsuccessful, or any appeal period available to the recipient regarding

that level of care determination has expired.

      (d) The department of human services is further authorized and directed to consolidate

all home and community-based services currently provided pursuant to section 1915(c) of title

XIX of the Untied United States Code into a single program of home and community-based

services that include options for consumer direction and shared living. The resulting single home

and community-based services program shall replace and supersede all section 1915(c) programs

when fully implemented. Notwithstanding the foregoing, the resulting single program home and

community-based services program shall include the continued funding of assisted living services

at any assisted living facility financed by the Rhode Island housing and mortgage finance

corporation prior to January 1, 2006, and shall be in accordance with chapter 66.8 of title 42 of

the general laws as long as assisted living services are a covered Medicaid benefit.

      (e) The department of human services is authorized to promulgate rules that permit

certain optional services including, but not limited to, homemaker services, home modifications,

respite, and physical therapy evaluations to be offered subject to availability of state-appropriated

funding for these purposes.

      (f) To promote the expansion of home and community-based service capacity, the

department of human services is authorized and directed to pursue rate reform for homemaker,

personal care (home health aide) and adult day care services, as follows:

      (1) A prospective base adjustment effective, not later than July 1, 2008, across all

departments and programs, of ten percent (10%) of the existing standard or average rate,

contingent upon a demonstrated increase in the state-funded or Medicaid caseload by June 30,

2009;

      (2) Development, not later than September 30, 2008, of certification standards

supporting and defining targeted rate increments to encourage service specialization and

scheduling accommodations including, but not limited to, medication and pain management,

wound management, certified Alzheimer's Syndrome treatment and support programs, and shift

differentials for night and week-end services; and

      (3) Development and submission to the governor and the general assembly, not later than

December 31, 2008, of a proposed rate-setting methodology for home and community-based

services to assure coverage of the base cost of service delivery as well as reasonable coverage of

changes in cost caused by wage inflation.

      (h) The department of human services is also authorized, subject to availability of

appropriation of funding, to pay for certain non-Medicaid reimbursable expenses necessary to

transition residents back to the community; provided, however, payments shall not exceed an

annual or per person amount.

      (i) To assure the continued financial viability of nursing facilities, the department of

human services is authorized and directed to develop a proposal for revisions to section 40-8-19

that reflect the changes in cost and resident acuity that result from implementation of this re-

balancing goal. Said proposal shall be submitted to the governor and the general assembly on or

before January 1, 2010.

 

     SECTION 7. This article shall take effect upon passage.