ARTICLE 23 SUBSTITUTE A AS AMENDED

 

RELATING TO MEDICAL ASSISTANCE

 

     SECTION 1. Section 40-8-19 of the General Laws in Chapter 40-8 entitled “Medical

Assistance” is hereby amended to read as follows:

 

     40-8-19.  Rates of payment to nursing facilities. -- (a) Rate reform. (1) The rates to be

paid by the state to nursing facilities licensed pursuant to chapter 17 of title 23, and certified to

participate in the Title XIX Medicaid program for services rendered to Medicaid-eligible

residents, shall be reasonable and adequate to meet the costs which must be incurred by

efficiently and economically operated facilities in accordance with 42 U.S.C. § 1396a(a)(13). The

department of human services shall promulgate or modify the principles of reimbursement for

nursing facilities currently in effect on July 1, 2003 to be consistent with the provisions of this

section and Title XIX, 42 U.S.C. § 1396 et seq., of the Social Security Act.

     (2) The department of human services shall review the current methodology for providing

Medicaid payments to nursing facilities, including other long-term care services providers, and is

authorized to modify the principles of reimbursement to provide for an acuity based rate

adjustment to nursing facilities. The department of human services is authorized to implement

changes to the payment structure for the purpose of basing compensation for Medicaid services to

nursing facilities and long term care service providers for services which shall be based upon

performance, quality, and the scope and the intensity of the services required by the provider to

meet the Medicaid recipient’s level of care needs. The acuity based rate adjustment shall take

effect on January 15, 2010, provided the Department of Human Services has held public hearings

and submitted the final implementation plan to the Chairpersons of the House and Senate Finance

Committees no later than December 1, 2009.

        (b) Rate reform. Subject to the phase-in provisions in subsections (c) and (d), the

department shall, on or before October 1, 2005, modify the principles of reimbursement for

nursing facilities to include the following elements:

        (1) Annual base years;

        (2) Four (4) cost centers: direct labor, property, other operating, and pass through items;

        (3) Re-array of costs of all facilities in the labor and other operating cost centers every

three (3) years beginning with calendar year 2002;

        (4) A ceiling maximum for allowable costs in the direct labor cost center to be

established by the department between one hundred ten percent (110%) and one hundred twenty-

five percent (125%) of the median for all facilities for the most recent array year.

        (5) A ceiling maximum for allowable costs in the other operating cost center to be

established by the department between ninety percent (90%) and one hundred fifteen percent

(115%) of the median for all facilities for the most recent array year;

        (6) Adjustment of costs and ceiling maximums by the increase in the National Nursing

Home Price Index ("NNHPI") for the direct labor cost center and the other operating cost center

for year between array years; such adjustments to be applied on October 1st of each year

beginning October 1, 2003 for the direct labor cost center and October 1, 2005 for the other

operating cost center, except for the fiscal year beginning July 1, 2006 for which the price index

shall be applied on February 1, 2007 and for the fiscal year beginning October 1, 2007 for which

the adjustment of costs and ceiling maximums shall be one and one-tenth percent (1.1%). For the

fiscal year beginning July 1, 2008, the price index shall be applied on April 1, 2009.

        (7) Application of a fair rental value system to be developed by the department for

calculating allowable reimbursement for the property cost center;

        (8) Such quality of care and cost containment incentives as may be established by

departmental regulations.

        (c) Phase I Implementation. The department shall file a state plan amendment with the

U.S. Department of Health and Human Services on or before August 1, 2003 to modify the

principles of reimbursement for nursing facilities, to be effective on October 1, 2003, or as soon

thereafter as is authorized by an approved state plan amendment, to establish the direct labor cost

center and the pass through items cost center utilizing calendar year 2002 cost data, and to apply

the ceiling maximums in subsections (b)(4) and (b)(5). Nursing facilities whose allowable 2002

direct labor costs are below the median in the direct labor cost center may make application to the

department for a direct labor cost interim payment adjustment equal to twenty-five percent (25%)

of the amount such allowable 2002 direct labor costs are below the median in the direct labor cost

center, provided that the interim payment adjustment granted by the department on or after

October 1, 2003 must be expended by the facility on expenses allowable within the direct labor

cost center, and any portion of the interim payment not expended on allowable direct labor cost

center expenses shall be subject to retroactive adjustment and recoupment by the department

upon the department's determination of a final direct labor payment adjustment after review of the

facility's actual direct labor expenditures. The final direct labor payment adjustment will be

included in the facility's October 1, 2004 rate until the facility's next base year.

        (d) Phase II Implementation. The department shall file a state plan amendment with the

U.S. Department of Health and Human Services to modify the principles of reimbursement for

nursing facilities, to be effective on September 1, 2004, or as soon thereafter as is authorized by

an approved state plan amendment, to establish a fair rental value system for calculating

allowable reimbursement for the property cost center in accordance with subsection (b)(7);

provided, however, that no facility shall receive a payment as of September 1, 2004 for property-

related expenses pursuant to the fair rental value system that is less than the property-related

payment they would have received for the other property-related ("OPR") cost center system in

effect as of June 30, 2004.

 

     SECTION 2. 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 for the purpose of purchasing for Medicaid recipients shared living provider

services, durable medical equipment and supplies, and any other Medicaid services, when

appropriate, in order 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 3. Section 40-8-1 of the General Laws in Chapter 40-8 entitled “Medical

Assistance” is hereby amended to read as follows:

 

     40-8-1.  Declaration of policy. -- (a) Whereas, in the state of Rhode Island there are

many persons who do not have sufficient income and resources to meet the cost of medical care

and who, except for income and resource requirements, would be eligible for aid or assistance

under § 40-5.1-9 or § 40-6-27; and

        (b) Whereas, it is in the best interest of all the citizens of this state to promote the

welfare of persons with the characteristics of persons eligible to receive public assistance and

ensure that they will receive adequate medical care and treatment in time of need;

        (c) Now, therefore, it is declared to be the policy of this state to provide medical

assistance for those persons in this state who possess the characteristics of persons receiving

public assistance under the provisions of § 40-5.1-9 or § 40-6-27, and who do not have the

income and resources to provide it for themselves or who can do so only at great financial

sacrifice. Provided, further, that such medical assistance, must qualify for federal financial

participation pursuant to the provisions of Title XIX of the federal Social Security Act, 42 U.S.C.

§ 1396 et seq., as such provisions apply to medically needy only applicants and recipients.

        (d) Medical assistance shall be provided under this chapter without regard to the

availability of federal financial participation: (1) to a person who does not meet the citizenship or

alienage criteria under Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., and who

was lawfully residing in the United States before August 22, 1996 and who was a resident of this

state prior to July 1, 1997; and provided, however, that such person meets all other eligibility

requirements under this chapter or under Title XIX or Title XXI of the Social Security Act.

      (e) Medical assistance shall also be provided under this chapter to a non citizen child

who was lawfully admitted for permanent residence on or after August 22, 1996 or who first

becomes otherwise entitled to reside in the United States on or after August 22, 1996; provided,

however, that such person meets all other eligibility requirements under this chapter or under

Title XIX or Title XXI of the Social Security Act.

 

      SECTION 4. Sections 40-8.4-2, 40-8.4-4, and 40-8.4-12 of the General Laws in

Chapter 40-8.4 entitled “Health Care for Families” are hereby amended to read as follows:

 

     40-8.4-2.  Purpose. -- It is the intent of the general assembly to continue to meet the goal

established in 1993 pursuant to § 42-12.3-1 to assure access to comprehensive health care by

providing or creating access to health insurance to all Rhode Islanders who are uninsured. Over

the course of several years, health insurance through the RIte Care program has been extended to

pregnant women and children living in families whose income is less than two hundred fifty

percent (250%) of the federal poverty level. Many of the parents of these children are uninsured

and without the means to purchase health insurance. Federal funds are available to help pay for

health insurance for low-income families through the medical assistance program under § 1931 of

Title XIX of the Social Security Act, 42 U.S.C. § 1396u-1, which de-links medical assistance

from cash assistance and allows for expanded income and resource methodologies. It is the intent

of the general assembly, therefore, to implement § 1931 of Title XIX of the Social Security Act

and in addition to provide expanded access to health insurance for eligible families. Federal funds

for some children and their parents pregnant women may also be available under Title XXI of the

Social Security Act, 42 U.S.C. § 1397 aa et seq., and it is further the intent of the general

assembly to access these funds as appropriate and as authorized in accordance with the legal

authority provided by the Children’s Health Insurance Program Reauthorization Act of 2009

(CHIPRA), and Title XXI of the Social Security Act, 42 U.S.C. § 1397 et seq.

 

     40-8.4-4.  Eligibility. -- (a) Medical assistance for families. There is hereby established a

category of medical assistance eligibility pursuant to § 1931 of Title XIX of the Social Security

Act, 42 U.S.C. § 1396u-1, for families whose income and resources are no greater than the

standards in effect in the aid to families with dependent children program on July 16, 1996 or

such increased standards as the department may determine. The department of human services is

directed to amend the medical assistance Title XIX state plan and to submit to the U.S.

Department of Health and Human Services an amendment to the RIte Care waiver project to

provide for medical assistance coverage to families under this chapter in the same amount, scope

and duration as coverage provided to comparable groups under the waiver. The department is

further authorized and directed to submit such amendments and/or requests for waivers to the

Title XXI state plan as may be necessary to maximize federal contribution for provision of

medical assistance coverage under this chapter provided pursuant to this chapter, including

providing medical coverage as a “qualified state” in accordance with Title XXI of the Social

Security Act, 42 U.S.C. § 1397 et seq. However, implementation Implementation of expanded

coverage under this chapter shall not be delayed pending federal review of any Title XXI

amendment or waiver.

     (b) Income. The director of the department of human services is authorized and directed

to amend the medical assistance Title XIX state plan or RIte Care waiver to provide medical

assistance coverage through expanded income disregards or other methodology for parents or

relative caretakers whose income levels are below one hundred seventy-five percent (175%) of

the federal poverty level.

     (c) Waiver. The department of human services is authorized and directed to apply for and

obtain appropriate waivers from the Secretary of the U.S. Department of Health and Human

Services, including, but not limited to, a waiver of the appropriate provisions of Title XIX, to

require that individuals 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

their medical assistance coverage provided through enrollment in either the RIte Care Program or

under the premium assistance program under § 40-8.4-12, in a manner and at an amount

consistent with comparable cost-sharing provisions under § 40-8.4-12, provided that such cost

sharing shall not exceed five percent (5%) of annual income for those with annual income in

excess of one hundred thirty-three percent (133%) one hundred fifty percent (150%); and

provided, further, that cost-sharing shall not be required for pregnant women or children under

age one.

 

      40-8.4-12.  RIte Share Health Insurance Premium Assistance Program. -- (1) The

department of human services is authorized and directed to amend the medical assistance Title

XIX state plan to implement the provisions of § 1906 of Title XIX of the Social Security Act, 42

U.S.C. § 1396e, and establish the Rhode Island health insurance premium assistance program for

RIte Care eligible parents with incomes up to one hundred seventy-five percent (175%) of the

federal poverty level who have access to employer-based health insurance. The state plan

amendment shall require eligible individuals with access to employer-based health insurance to

enroll themselves and/or their family in the employer-based health insurance plan as a condition

of participation in the RIte Share program under this chapter and as a condition of retaining

eligibility for medical assistance under chapters 5.1 and 8.4 of this title and/or chapter 12.3 of title

42 and/or premium assistance under this chapter, provided that doing so meets the criteria

established in § 1906 of Title XIX for obtaining federal matching funds and the department has

determined that the individual's and/or the family's enrollment in the employer-based health

insurance plan is cost-effective and the department has determined that the employer-based health

insurance plan meets the criteria set forth in subsection (d). The department shall provide

premium assistance by paying all or a portion of the employee's cost for covering the eligible

individual or his or her family under the employer-based health insurance plan, subject to the cost

sharing provisions in subsection (b), and provided that the premium assistance is cost-effective in

accordance with Title XIX, 42 U.S.C. § 1396 et seq.

        (b) Individuals who can afford it shall share in the cost. The department of human

services is authorized and directed to apply for and obtain any necessary waivers 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 Title XIX, 42 U.S.C. § 1396 et seq., to require

that individuals eligible for RIte Care 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 insurance based on the

individual's ability to pay, provided that the cost sharing shall not exceed five percent (5%) of the

individual's annual income. The department of human services shall implement the cost-sharing

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

so.

        (c) Current RIte Care enrollees with access to employer-based health insurance. The

department of human services shall require any individual who receives RIte Care or whose

family receives RIte Care on the effective date of the applicable regulations adopted in

accordance with subsection (f) to enroll in an employer-based health insurance plan at the

individual's eligibility redetermination date or at an earlier date determined by the department,

provided that doing so meets the criteria established in the applicable sections of Title XIX, 42

U.S.C. § 1396 et seq., for obtaining federal matching funds and the department has determined

that the individual's and/or the family's enrollment in the employer-based health insurance plan is

cost-effective and has determined that the health insurance plan meets the criteria in subsection

(d). The insurer shall accept the enrollment of the individual and/or the family in the employer-

based health insurance plan without regard to any enrollment season restrictions.

        (d) Approval of health insurance plans for premium assistance. The department of

human services shall adopt regulations providing for the approval of employer-based health

insurance plans for premium assistance and shall approve employer-based health insurance plans

based on these regulations. In order for an employer-based health insurance plan to gain approval,

the department must determine that the benefits offered by the employer-based health insurance

plan are substantially similar in amount, scope, and duration to the benefits provided to RIte Care

eligible persons by the RIte Care program, when the plan is evaluated in conjunction with

available supplemental benefits provided by the department. The department shall obtain and

make available to persons otherwise eligible for RIte Care as supplemental benefits those benefits

not reasonably available under employer-based health insurance plans which are required for RIte

Care eligible persons by state law or federal law or regulation.

        (e) Maximization of federal contribution. The department of human services is

authorized and directed to apply for and obtain federal approvals and waivers necessary to

maximize the federal contribution for provision of medical assistance coverage under this section,

including the authorization to amend the Title XXI state plan and to obtain any waivers

necessary to reduce barriers to provide premium assistance to recipients as provided for in Title

XXI of the Social Security Act, 42 U.S.C. § 1397 et seq.

        (f) Implementation by regulation. The department of human services is authorized and

directed to adopt regulations to ensure the establishment and implementation of the premium

assistance program in accordance with the intent and purpose of this section, the requirements of

Title XIX, Title XXI and any approved federal waivers.

 

     SECTION 5. Sections 42-12.3-3, 42-12.3-4 and 42-12.3-15 of the General Laws in

Chapter 42-12 entitled “Health Care for Children and Pregnant Women” are hereby amended to

read as follows:

 

       42-12.3-3.  Medical assistance expansion for pregnant women/RIte Start. -- (a) The

director of the department of human services is authorized to amend its title XIX state plan

pursuant to title XIX of the Social Security Act to provide Medicaid coverage and to amend its

title XXI state plan pursuant to Title XXI of the Social Security Act to provide medical assistance

coverage through expanded family income disregards for pregnant women whose family income

levels are between one hundred eighty-five percent (185%) and two hundred fifty percent (250%)

of the federal poverty level. The department is further authorized to promulgate any regulations

necessary and in accord with title XIX [42 U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. §1397

et seq.] of the Social Security Act necessary in order to implement said state plan amendment.

The services provided shall be in accord with title XIX [42 U.S.C. § 1396 et seq.] and title XXI

[42 U.S.C. §1397 et seq.] of the Social Security Act.

        (b) The director of the department of human services is authorized and directed to

establish a payor of last resort program to cover prenatal, delivery and postpartum care. The

program shall cover the cost of maternity care for any woman who lacks health insurance

coverage for maternity care and who is not eligible for medical assistance under title XIX [42

U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. §1397 et seq.] of the Social Security Act

including, but not limited to, a non-citizen pregnant woman lawfully admitted for permanent

residence on or after August 22, 1996, without regard to the availability of federal financial

participation, provided such pregnant woman satisfies all other eligibility requirements. The

director shall promulgate regulations to implement this program. Such regulations shall include

specific eligibility criteria; the scope of services to be covered; procedures for administration and

service delivery; referrals for non-covered services; outreach; and public education. Excluded

services under this paragraph will include, but not be limited to, induced abortion except to

prevent the death of the mother.

        (c) The department of human services may enter into cooperative agreements with the

department of health and/or other state agencies to provide services to individuals eligible for

services under subsections (a) and (b) above.

        (d) The following services shall be provided through the program:

        (1) Ante-partum and postpartum care;

        (2) Delivery;

        (3) Cesarean section;

        (4) Newborn hospital care;

        (5) Inpatient transportation from one hospital to another when authorized by a medical

provider;

        (6) Prescription medications and laboratory tests;

        (e) The department of human services shall provide enhanced services, as appropriate,

to pregnant women as defined in subsections (a) and (b), as well as to other pregnant women

eligible for medical assistance. These services shall include: care coordination, nutrition and

social service counseling, high risk obstetrical care, childbirth and parenting preparation

programs, smoking cessation programs, outpatient counseling for drug-alcohol use, interpreter

services, mental health services, and home visitation. The provision of enhanced services is

subject to available appropriations. In the event that appropriations are not adequate for the

provision of these services, the department has the authority to limit the amount, scope and

duration of these enhanced services.

      (f) The department of human services shall provide for extended family planning

services for up to twenty-four (24) months postpartum. These services shall be available to

women who have been determined eligible for RIte Start or for medical assistance under title XIX

[42 U.S.C. § 1396 et seq.] or title XXI [42 U.S.C. §1397 et seq.] of the Social Security Act

 

     42-12.3-4. "RIte track" program. -- There is hereby established a payor of last resort

program for comprehensive health care for children until they reach nineteen (19) years of age, to

be known as "RIte track". The department of human services is hereby authorized to amend its

title XIX state plan pursuant to title XIX [42 U.S.C. § 1396 et seq.] and title XXI [42 U.S.C.

§1397 et seq.] of the Social Security Act as necessary to provide for expanded Medicaid coverage

through expanded family income disregards for children, until they reach nineteen (19) years of

age, whose family income levels are up to two hundred fifty percent (250%) of the federal

poverty level. Provided, however, that health care coverage provided under this section shall also

be provided in accordance to Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., to a

non citizen child who is lawfully residing in the United States, and who is otherwise eligible for

such assistance. The department is further authorized to promulgate any regulations necessary,

and in accord with title XIX [42 U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. §1397 et seq.] of

the Social Security Act as necessary in order to implement the state plan amendment. For those

children who lack health insurance, and whose family incomes are in excess of two hundred fifty

percent (250%) of the federal poverty level, the department of human services shall promulgate

necessary regulations to implement the program. The department of human services is further

directed to ascertain and promulgate the scope of services that will be available to those children

whose family income exceeds the maximum family income specified in the approved title XIX

[42 U.S.C. § 1396 et seq.] and title XXI [42 U.S.C. §1397 et seq.] state plan amendment.

 

      42-12.3-15.  Expansion of RIte track program. -- The Department of Human Services

is hereby authorized and directed to submit to the United States Department of Health and Human

Services an amendment to the "RIte Care" waiver project number 11-W-0004/1-01 to provide for

expanded Medicaid coverage for children until they reach eight (8) years of age, whose family

income levels are to two hundred fifty percent (250%) of the federal poverty level. Expansion of

the RIte track program from the age of six (6) until they reach eighteen (18) years of age in

accordance with this chapter shall be subject to the approval of the amended waiver by the United

States Department of Health and Human Services. Health care coverage under this section shall

also be provided to a non-citizen child lawfully residing in the United States, and who is

otherwise eligible for such assistance under title XIX [42 U.S.C. § 1396 et seq.] or title XXI [42

U.S.C. §1397 et seq.]

 

     SECTION 6. Sections 40-8-13.1 and 40-8-13.2 of the General Laws in Charter 40-8

entitled “Medical Assistance” are hereby amended to read as follows:

 

     40-8-13.1. Reimbursement for out-of-state hospital services. -- (a) The department of

human services is hereby authorized and directed to amend, effective July 1, 1995, its regulations,

fee schedules and the Rhode Island state plan for medical assistance (Medicaid) pursuant to Title

XIX of the federal Social Security Act to provide for reimbursement to out-of-state hospitals for

services provided to eligible recipients in accordance with this section.

        (b) Authorized inpatient hospital services shall be reimbursed at a rate equal to fifty

percent (50%) of the out-of-state hospital's customary charge(s) for such services to Title XIX

recipients in that state; provided, however, that in-patient hospital organ transplant services shall

be reimbursed at sixty-one percent (61%) of the out-of-state hospital's customary charge(s) for

such organ transplant services to Title XIX recipients in that state. Authorized outpatient hospital

services (other than laboratory services) shall be reimbursed at a rate equal to fifty-three percent

(53%) of the out-of-state hospital's customary charge(s) for such services to Title XIX recipients

in that state; outpatient laboratory services shall be reimbursed at the Medicare allowable rate.

        (c) The department may periodically adjust the inpatient and/or outpatient service

reimbursement rate(s) based upon a medical care cost index to be determined by the department.

        (e) The provisions of this section shall be repealed upon the promulgation of

amendments and new methodology pursuant to sections 40-8-13.3 and 40-8-13.4, but in any

event no later than March 30, 2010.

 

     40-8-13.2.  Prospective rate methodology for in-state hospital services. -- As a

condition of participation in the established prospective rate methodology for reimbursement of

in-state hospital services, every hospital shall submit year-end settlement reports to the

department within one year from the close of a hospital's fiscal year. In the event that a

participating hospital fails to timely submit a year-end settlement report as required, the

department shall withhold financial cycle payments due by any state agency with respect to this

hospital by not more than ten percent (10%) until the report is received. The provisions of this

section shall be repealed upon the promulgation of amendments and new methodology pursuant

to sections 40-8-13.3 and 40-8-13.4, but in any event no later than March 30, 2010.

 

     SECTION 7. Chapter 40-8 of the General Laws entitled “Medical Assistance” is hereby

amended by adding thereto the following sections:

 

      40-8-13.3.  Payment for Services provided by in state and out of state hospitals.-- (a)

The department of human services and/or the secretary of executive office of health and human

services is hereby authorized and directed to amend its rules and regulations and amend the

Rhode Island state plan for medical assistance (Medicaid) pursuant to Title XIX of the federal

Social Security Act in order to provide for payment to hospitals for services provided to eligible

recipients in accordance with this chapter. The provisions of this section shall be effective upon

the promulgation of the amendments and new payment methodology pursuant to this section and

section 40-8-13.4, which shall in any event be no later than March 30, 2010, at which time the

provisions of sections 40-8-13.2, 27-19-14, 27-19-15 and 27-19-16 shall be repealed in their

entirety.

 

     40-8-13.4. Rate methodology for payment for in state and out of state hospital

services.--

     (a) The department of human services shall implement a new methodology for payment

for in state and out of state hospital services in order to ensure access to and the provision of high

quality and cost-effective hospital care to its eligible recipients.

     (b) In order to improve efficiency and cost effectiveness, the department of human

services shall:

     (1) With respect to inpatient services: Implement a new payment methodology for

inpatient services utilizing the Diagnosis Related Groups (DRG) method of payment, which is, a

patient classification method which provides a means of relating payment to the hospitals to the

type of patients cared for by the hospitals. It is understood that a payment method based on

Diagnosis Related Groups may include cost outlier payments and other specific exceptions.

     (2) With respect to outpatient services. Notwithstanding any provisions of the law to the

contrary, the department will reimburse hospitals for outpatient services using a rate methodology

determined by the department and in accordance with federal regulations.

     (c) It is intended that payment utilizing the Diagnosis Related Groups method shall

reward hospitals for providing the most efficient care, and provide the department the opportunity

to conduct value based purchasing of inpatient care.

     (d) The director of the department of human services and/or the secretary of executive

office of health and human services is hereby authorized to promulgate such rules and regulations

consistent with this chapter, and to establish fiscal procedures he or she deems necessary for the

proper implementation and administration of this chapter in order to provide payment to hospitals

using the Diagnosis Related Group payment methodology. Furthermore, amendment of the

Rhode Island state plan for medical assistance (Medicaid) pursuant to Title XIX of the federal

Social Security Act is hereby authorized to provide for payment to hospitals for services provided

to eligible recipients in accordance with this chapter.

     (e) The department shall comply with all public notice requirements necessary to

implement these rate changes.

     (f) As a condition of participation in the DRG methodology for payment of hospital

services, every hospital shall submit year-end settlement reports to the department within one

year from the close of a hospital's fiscal year. Should a participating hospital fail to timely submit

a year-end settlement report as required by this section, the department shall withhold financial

cycle payments due by any state agency with respect to this hospital by not more than ten percent

(10%) until said report is submitted.

     (g) The provisions of this section shall be effective upon implementation of the

amendments and new payment methodology pursuant to this section and section 40-8-13.3,

which shall in any event be no later than March 30, 2010, at which time the provisions of sections

40-8-13.2, 27-19-14, 27-19-15 and 27-19-16 shall be repealed in their entirety.

 

     SECTION 8. Sections 27-19-14, 27-19-15 and 27-19-16 of the General Laws in Chapter

27-19 entitled “Nonprofit Hospital Service Corporations” are hereby amended to read as follows:

 

       27-19-14.  Negotiation of hospital cost.-- The state, acting through the budget officer

or his or her designated representative, hospitals, and hospital service corporations incorporated

under this chapter shall be parties to annual budget negotiations held for the purpose of

determining payment rates for hospital costs by the state and those corporations. The parties to

the negotiations shall know the total operating expenses for hospitals. The negotiations shall

commence no later than one hundred eighty (180) days prior to the beginning of each hospital

fiscal year. The negotiations, which shall be considered collective bargaining for the purposes of

§ 42-46-5(a)(2), shall be held for each hospital fiscal year and individual budget negotiations

shall commence not later than ninety (90) days prior to the beginning of each hospital fiscal year.

The parties shall employ mediation and arbitration services as an aid to the negotiations. The

provisions of this section shall be repealed upon the implementation of amendments and new

methodology pursuant to sections 40-8-13.3 and 40-8-13.4, but in any event no later than March

30, 2010.

 

      27-19-15.  Agreement on budgets. -- (a) The budgets and/or each hospital's projected

expenses and related statistics shall be agreed upon not later than thirty (30) days prior to the

beginning of each hospital fiscal year. The agreement shall be prima facie evidence that the

budgets and related statistics are:

        (1) Consistent with the proper conduct of the business of the corporations and the

interest of the public to the extent that the budgets constitute in the aggregate a component of

hospital service rates filed for approval in any rate hearing; and

        (2) Reasonable as a component of rates paid by the state as a purchaser of hospital

services.

        (b) Each hospital shall file its proposed budget to the state budget office which shall

include projected expenses for the current fiscal year and planned expenses for the next fiscal

year. Each hospital will also file with the state budget office a copy of its audited financial

statements with rates within thirty (30) days of acceptance by the hospital's board of trustees. The

provisions of this section shall not apply and shall be repealed upon the implementation of

amendments and new methodology pursuant to sections 40-8-13.3 and 40-8-13.4, but in any

event no later than March 30, 2010.

 

        27-19-16.  Severability. -- If a court of competent jurisdiction shall adjudge that the

requirement in § 27-19-14 that the state be a party to negotiations in which the United States is a

party or otherwise interested is invalid or unconstitutional, that judgment shall not impair or

invalidate § 27-19-14 insofar as it requires the state to be a party to negotiations between

hospitals and hospital service corporations; and if any other clause, sentence, or section of §§ 27-

19-14, 27-19-15, or this section is adjudged invalid or unconstitutional by a court of competent

jurisdiction, the remaining provisions of the sections will not be impaired or invalidated by that

invalidity, but the effect of the judgment shall be confined to the clause, sentence, or section so

adjudged to be invalid or unconstitutional. If the United States or any of its departments or

agencies requires that funds supplied by it to the state for the purchase or reimbursement of

hospital services be disbursed in a manner inconsistent with any agreement reached by the parties

pursuant to §§ 27-19-14 and 27-19-15, that requirement shall not affect any agreement as to other

funds to be paid by the state or by hospital service corporations. The provisions of this section

shall be repealed upon the implementation of amendments and new methodology pursuant to

sections 40-8-13.3 and 40-8-13.4, but in any event no later than March 30, 2010.

 

     SECTION 9. Title 40 of the General Laws entitled “HUMAN SERVICES” is hereby

amended by adding thereto the following chapter:

 

     CHAPTER 40-8.10

     LONG TERM CARE SERVICE REFORM FOR MEDICAID ELIGIBLE INDIVIDUALS

 

     40-8.10-1. Purpose. -- (a) In order to ensure that all Medicaid recipients eligible for long-

term care have access to the full continuum of services they need, the secretary of the executive

office of health and human services, in collaboration with the director of the department of human

services and the directors of the departments of children youth and families, elderly affairs,

health, and mental health, retardation and hospitals, shall offer eligible Medicaid recipients the

full range of services as allowed under the terms and conditions of the Rhode Island Global

Consumer Choice Compact 1115a Demonstration Waiver, including institutional services and the

home and community based services provided for under the previous Medicaid Section 1915 (c)

waivers, as well as additional services for medication management, transition services and other

authorized services as defined in this chapter, in order to meet the individual needs of the

Medicaid recipient.

 

     40-8.10-2. Definitions.-- As used in this chapter,

     (a) “Core services” mean homemaker services, environmental modifications (home

accessibility adaptations, special medical equipment (minor assistive devices), meals on wheels (

home delivered meals), personal emergency response (PERS), licensed practical nurse services,

community transition services, residential supports, day supports, supported employment,

supported living arrangements, private duty nursing, supports for consumer direction (supports

facilitation), participant directed goods and services, case management, senior companion

services, assisted living, personal care assistance services and respite.

     (b) “Preventive services” mean homemaker services, minor environmental modifications,

physical therapy evaluation and services and respite services.

 

      40-8.10-3. Levels of Care.-- (a) The secretary of the executive office of health and

human services shall coordinate responsibilities for long-term care assessment in accordance with

the provisions of this chapter within the department of human services, and with the cooperation

of the directors of the department of elderly affairs, the department of children, youth and

families , and the department of mental health, retardation and hospitals. Assessments conducted

by each department’s staff shall be coordinated through the Assessment Coordination Unit

(ACU). Members of each department’s staff responsible for assessing level of care, developing

care plans, and determining budgets will meet on a regular basis in order to ensure that services

are provided in a uniform and consistent manner. Importance shall be placed upon the proper and

consistent determination of levels of care across the state departments for each long-term care

setting, including behavioral health residential treatment facilities, long-term care hospitals,

intermediate care facilities, and/or skilled nursing facilities. Three (3) appropriate plans of care

that meet the needs of the individual Medicaid recipients shall be coordinated and consistent

across all state departments. The development of care plans shall be person-centered and shall

support individual self-determination, family involvement, when appropriate, individual choice

and interdepartmental collaboration.

     (b) Levels of care for long-term care institutions (behavioral health residential treatment

facilities, long-term care hospitals, intermediate care facilities and /or skilled nursing facilities),

for which alternative community-based services and supports are available, shall be established

pursuant to the section 40-8.9-9. The structure of the three (3) levels of care is as follows:

     (i) Highest level of care. Individuals who are determined, based on medical need, to

require the institutional level of care will have the choice to receive services in a long-term care

institution or in a home and community-based setting.

     (ii) High level of care. Individuals who are determined, based on medical need, to benefit

from home and community-based services.

     (iii) Preventive level of care. Individuals who do not presently need an institutional level

of care but who need services targeted at preventing admission, re-admissions or reducing lengths

of stay in an institution.

     (c) Determinations of levels of care and the provision of long term care health services

shall be determined in accordance with this section and shall be in accordance with the applicable

provisions of section 40-8.9-9.

 

     40-8.10-4.  Assessment and Coordination Unit (ACU). -- (a) The department of human

services, in collaboration with the executive office of health and human services, shall implement

a long-term care options counseling program to provide individuals or their representative, or

both, with long-term care consultations that shall include, at a minimum, information about long-

term care options, sources and methods of both public and private payment for long term care

services, and an assessment of an individual’s functional capabilities and opportunities for

maximizing independence. Each individual admitted to or seeking admission to a long- term

care facility, regardless of the payment source, shall be informed by the facility of the availability

of the long-term care options counseling program and shall be provided with a long-term care

options consultation, if he or she so requests. Each individual who applies for Medicaid long-term

care services shall be provided with a long-term care consultation.

     (b) Core and preventative home and community based services defined and delineated in

section 40-8.10-2 shall be provided only to those individuals who meet one of the levels of care

provided for in this chapter. Other long term care services authorized by the federal government,

such as medication management, may also be provided to Medicaid eligible recipients who have

established the requisite need as determined by the Assessment and Coordination Unit (ACU).

Access to institutional and community based supports and services shall be through the

Assessment and Coordination Unit (ACU). The provision of Medicaid-funded long-term care

services and supports shall be based upon a comprehensive assessment that shall include, but not

be limited to, an evaluation of the medical, social and environmental needs of each applicant for

these services or programs. The assessment shall serve as the basis for the development and

provision of an appropriate plan of care for the applicant.

     (c) The ACU shall assess the financial eligibility of beneficiaries to receive long-term

care services and supports in accordance with the applicable provisions of section 40-8.9-9.

     (d) The ACU shall be responsible for conducting assessments; determining a level of care

for applicants for medical assistance; developing service plans; pricing a service budget and

developing a voucher when appropriate; making referrals to appropriate settings; maintaining a

component of the unit that will provide training to and will educate consumers, discharge

planners and providers; tracking utilization; monitoring outcomes; and reviewing service/care

plan changes. The ACU shall provide interdisciplinary high cost case reviews and choice

counseling for eligible recipients.

     (e) The assessments for individuals conducted in accordance with this section shall serve

as the basis for individual budgets for those medical assistance recipients eligible to receive

services utilizing a self-directed delivery system.

     (f) Nothing in this section shall prohibit the secretary of the executive office of health and

human services, or the directors of that office’s departments from utilizing community agencies

or contractors when appropriate to perform assessment functions outlined in this chapter.

 

     40-8.10-5. Payments.-- The department of human services shall not make payment for a

person receiving a long-term home health care program, while payments are being made for that

person for inpatient care in a skilled nursing and/or intermediate care facility or hospital.

 

     40-8.10-6. Rules and Regulations.-- The secretary of the executive office of health and

human services, the directors of the department of human services, the department of elderly

affairs, the department of children youth and families and the department of mental health

retardation and hospitals are hereby authorized to promulgate rules and regulations necessary to

implement all provisions of this chapter and to seek necessary federal approvals in accordance

with the provisions of the Global Compact Waiver.

 

     SECTION 10. 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 long-term care institutions, such as

behavioral health residential treatment facilities, juvenile detention centers, psychiatric facilities,

and/or long-term care hospitals, intermediate care facilities and/or skilled nursing facilities.

        (c) (1) Pursuant to federal authority procured under § 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 need based eligibility

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

mentally retarded as well as home institutions for long-term care and community-based

alternatives,. Separate needs based criteria may be established taking into account the long-term

care institution for which alternative community-based services and supports are available. The

department is authorized to adopt criteria for admission to long-term care institutions 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.

     (2) The department is authorized, subject to prior approval of the general assembly, to

and shall provide a common standard of income financial eligibility for both institutional and

home and community-based care. The department is 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:

     (i) 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;

     (ii) 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;

     (iii) 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

     (iv) 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.

     (v) 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 § 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 § 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 providers of

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 § 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 11. Section 40-8-17 of the General Laws in Chapter 40-8 entitled “Medical

Assistance” is hereby amended to read as follows:

 

     40-8-17. Waiver request – Formulation. -- (a) Formation. 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 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, including, but not limited to, a § 1115(a) global demonstration waiver that provides

program flexibility in exchange for federal budgetary certainty and under which Rhode Island

will operate all facets of the state's Medicaid program, except as may be explicitly exempted

under any applicable public or general laws.

     (b) Effective July 1, 2009, any provision presently in effect in the Rhode Island General

Laws where the department of human services, in conjunction with the executive office of health

and human services, is authorized to apply for and obtain any necessary waiver(s), waiver

amendment(s) and/or state plan amendment(s) for the purpose of providing medical assistance to

recipients, shall authorize the department of human services, in conjunction with the executive

office of health and human services, to proceed with appropriate category changes in accordance

with the special terms and conditions of the Rhode Island Global Consumer Choice Compact

section 1115(a) Demonstration Waiver, which became effective January 16, 2009.

 

     SECTION 12. Chapter 40-8 of the General Laws entitled “Medical Assistance” is hereby

amended by adding thereto the following section:

 

     40-8-4.1. Lowest Price. -- (a) Notwithstanding any provision of law to the contrary, no

medical assistance provider shall bill or charge the department of human services more than the

provider's usual and customary charge, as defined within.

     (b) The term “usual and customary” means the lowest charge, fee, or rate charged by a

provider for any product or service at the time such product or service was provided. For the

purpose of determining the lowest charge, fee, or rate:

     (1) If the provider offers discounts or rebates, the amount after applying discounts or

rebates shall be utilized;

     (2) If the provider offers a sale for a limited period of time on any good or service, the

sale price shall be utilized during the sale period;

     (3) If the provider regularly accepts less than its full charge from any customer, that

amount accepted shall be utilized;

     (4) If any good or service is offered free of charge by the provider, no charge shall be

made to the department for the provision of the product or service to the department or a client of

the department who satisfies the terms of the offer;

     (5) If any good or service is covered under any warranty or guarantee offered by the

provider, the amount charged to the department shall not exceed the amount which would

otherwise be payable solely by the customer; and

     (6) If a provider structures or packages its goods or services in a manner which is

exclusively or primarily used for Medicaid, Medicare, or other third-party payors, the charge for

the most similar good or service offered to any other consumer shall be utilized.

     (c) The following items shall not be utilized in determining the “usual and customary” or

lowest charge, fee, or rate:

     (1) Discounts offered solely to bona fide employees or family members of employees;

     (2) Discounts offered solely on the basis of age shall be utilized in determining the usual

and customary charge only when the client of the department satisfies the age requirement;

     (3) Free goods or services or discounts provided to a limited number of persons on the

basis of financial hardship;

     (4) Charges by an organization on a sliding fee scale for a good or service where the

organization's charge is based on ability to pay;

     (5) Charges not collected as a result of bad debts incurred by the provider. A bad debt

exists where sound business judgment indicates that there is no reasonable likelihood of recovery

of the amount owed; and

     (6) Charges for educational-related services governed by 42 U.S.C. 1396b(c).

     (d) The department may waive the application of this section, if the department

determines such action is necessary to ensure a continuum of care and service to persons served

by community mental health centers, or to avert serious economic hardships to mental health

centers.

 

     SECTION 13. Sections 40-8.4-4 and 40-8.4-12 of the General Laws in Chapter 40-8.4

entitled "Health Care For Families" are hereby amended to read as follows:

 

     40-8.4-4. Eligibility. -- (a) Medical assistance for families. - There is hereby established

a category of medical assistance eligibility pursuant to section 1931 of Title XIX of the Social

Security Act, 42 U.S.C. section 1396u-1, for families whose income and resources are no greater

than the standards in effect in the aid to families with dependent children program on July 16,

1996 or such increased standards as the department may determine. The department of human

services is directed to amend the medical assistance Title XIX state plan and to submit to the U.S.

Department of Health and Human Services an amendment to the RIte Care waiver project to

provide for medical assistance coverage to families under this chapter in the same amount, scope

and duration as coverage provided to comparable groups under the waiver. The department is

further authorized and directed to submit such amendments and/or requests for waivers to the

Title XXI state plan as may be necessary to maximize federal contribution for provision of

medical assistance coverage under this chapter. However, implementation of expanded coverage

under this chapter shall not be delayed pending federal review of any Title XXI amendment or

waiver.

      (b) Income. - The director of the department of human services is authorized and

directed to amend the medical assistance Title XIX state plan or RIte Care waiver to provide

medical assistance coverage through expanded income disregards or other methodology for

parents or relative caretakers whose income levels are below one hundred seventy-five percent

(175%) of the federal poverty level.

      (c) Waiver. - The department of human services is authorized and directed to apply for

and obtain appropriate waivers from the Secretary of the U.S. Department of Health and Human

Services, including, but not limited to, a waiver of the appropriate provisions of Title XIX, to

require that individuals 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

their medical assistance coverage provided through enrollment in either the RIte Care Program or

under the premium assistance program under section 40-8.4-12, in a manner and at an amount

consistent with comparable cost-sharing provisions under section 40-8.4-12, provided that such

cost sharing shall not exceed five percent (5%) of annual income for those with annual income in

excess of one hundred thirty-three percent (133%) one hundred fifty percent (150%); and

provided, further, that cost-sharing shall not be required for pregnant women or children under

age one.

 

     40-8.4-12. RIte Share Health Insurance Premium Assistance Program. -- (1) The

department of human services is authorized and directed to amend the medical assistance Title

XIX state plan to implement the provisions of section 1906 of Title XIX of the Social Security

Act, 42 U.S.C. section 1396e, and establish the Rhode Island health insurance premium assistance

program for RIte Care eligible parents with incomes up to one hundred seventy-five percent

(175%) of the federal poverty level who have access to employer-based health insurance. The

state plan amendment shall require eligible individuals with access to employer-based health

insurance to enroll themselves and/or their family in the employer-based health insurance plan as

a condition of participation in the RIte Share program under this chapter and as a condition of

retaining eligibility for medical assistance under chapters 5.1 and 8.4 of this title and/or chapter

12.3 of title 42 and/or premium assistance under this chapter, provided that doing so meets the

criteria established in section 1906 of Title XIX for obtaining federal matching funds and the

department has determined that the individual's and/or the family's enrollment in the employer-

based health insurance plan is cost-effective and the department has determined that the

employer-based health insurance plan meets the criteria set forth in subsection (d). The

department shall provide premium assistance by paying all or a portion of the employee's cost for

covering the eligible individual or his or her family under the employer-based health insurance

plan, subject to the cost sharing provisions in subsection (b), and provided that the premium

assistance is cost-effective in accordance with Title XIX, 42 U.S.C. section 1396 et seq.

     (b) Individuals who can afford it shall share in the cost. - The department of human

services is authorized and directed to apply for and obtain any necessary waivers 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 Title XIX, 42 U.S.C. section 1396 et seq., to

require that individuals eligible for RIte Care 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 insurance based on

the individual's ability to pay, provided that the cost sharing shall not exceed five percent (5%) of

the individual's annual income. The department of human services shall implement the cost-

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

to do so.

      (c) Current RIte Care enrollees with access to employer-based health insurance. - The

department of human services shall require any individual who receives RIte Care or whose

family receives RIte Care on the effective date of the applicable regulations adopted in

accordance with subsection (f) to enroll in an employer-based health insurance plan at the

individual's eligibility redetermination date or at an earlier date determined by the department,

provided that doing so meets the criteria established in the applicable sections of Title XIX, 42

U.S.C. section 1396 et seq., for obtaining federal matching funds and the department has

determined that the individual's and/or the family's enrollment in the employer-based health

insurance plan is cost-effective and has determined that the health insurance plan meets the

criteria in subsection (d). The insurer shall accept the enrollment of the individual and/or the

family in the employer-based health insurance plan without regard to any enrollment season

restrictions.

      (d) Approval of health insurance plans for premium assistance. - The department of

human services shall adopt regulations providing for the approval of employer-based health

insurance plans for premium assistance and shall approve employer-based health insurance plans

based on these regulations. In order for an employer-based health insurance plan to gain approval,

the department must determine that the benefits offered by the employer-based health insurance

plan are substantially similar in amount, scope, and duration to the benefits provided to RIte Care

eligible persons by the RIte Care program, when the plan is evaluated in conjunction with

available supplemental benefits provided by the department. The department shall obtain and

make available to persons otherwise eligible for RIte Care as supplemental benefits those benefits

not reasonably available under employer-based health insurance plans which are required for RIte

Care eligible persons by state law or federal law or regulation.

      (e) Maximization of federal contribution. - The department of human services is

authorized and directed to apply for and obtain federal approvals and waivers necessary to

maximize the federal contribution for provision of medical assistance coverage under this section.

      (f) Implementation by regulation. - The department of human services is authorized and

directed to adopt regulations to ensure the establishment and implementation of the premium

assistance program in accordance with the intent and purpose of this section, the requirements of

Title XIX and any approved federal waivers.

 

     SECTION 14. Section 13 shall take effect on May 31, 2009. The remainder of the article

shall take effect upon passage. Any rules or regulations necessary or advisable to implement the

provisions of section 1 this article shall be effective immediately as an emergency rule upon the

department’s filing thereof with the secretary of state as it is hereby found that the current fiscal

crisis in this state has caused an imminent peril to public health, safety and welfare, and the

department is hereby exempted from the requirements of sections 42-35-3(b) and 42-35-4(b)(2)

relating to agency findings of imminent peril to public health, safety and welfare and the filing of

statements of the agency’s reasons thereof.