ARTICLE 16 AS AMENDED

 

RELATING TO THE MEDICAID REFORM ACT

 

     SECTION 1. Medicaid Reform.

     WHEREAS, The general assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode

Island Medicaid Reform Act of 2008”; and

     WHEREAS, A Joint Resolution is required pursuant to Rhode Island General Laws § 42-

12.4-1, et seq.; and

     WHEREAS, Rhode Island General Law § 42-12.4-7 provides that any change that

requires the implementation of a rule or regulation or modification of a rule or regulation in

existence prior to the implementation of the global consumer choice section 1115 demonstration

(“the demonstration”) shall require prior approval of the general assembly, and further provides

that any category II change or category III change as defined in the demonstration shall also

require prior approval by the general assembly; and

     WHEREAS, Rhode Island General Law § 42-7.2-5 provides that the Secretary of the

Office of Health and Human Services is responsible for the “review and coordination of any

Global Consumer Choice Compact Waiver requests and renewals as well as any initiatives and

proposals requiring amendments to the Medicaid state plan or category I or II changes” as

described in the demonstration, with “the potential to affect the scope, amount, or duration of

publicly-funded health care services, provider payments or reimbursements, or access to or the

availability of benefits and services provided by Rhode Island general and public laws”; and

     WHEREAS, In pursuit of a more cost-effective consumer choice system of care that is

fiscally sound and sustainable, the secretary requests general assembly approval of the following

proposals to amend the demonstration:

     (a) Nursing Facility Payment Rate Reform. The Medicaid single state agency proposes to

reform the methodology used for determining rates by revising completely the Principles of

Reimbursement to simplify and change the amount paid to nursing facilities. Because

implementation of this proposal will result in a new payment process and structure for a Medicaid

funded service, a Category II change is required under the terms and conditions established for

the Global Consumer Choice Compact Waiver. Further, effectuating such reforms in the

methodology for setting nursing facilities rates may also require the adoption of new or amended

rules, regulations and procedures for providers and/or beneficiaries.

     (b) Selective Contracting –Medicaid Home Health Services. The Medicaid single state

agency proposes to selectively contract with home health agencies that meet specific standards

related to economy, efficiency and performance. This process of selective contracting will result

in a change to the payment structure for a Medicaid funded service. Therefore, a Category II

change is required for implementation under the terms and conditions of the Global Consumer

Choice Waiver Compact.

     (c) Pain Management Benefits for Medicaid Beneficiaries. The Medicaid single state

agency proposes to include a pain management benefit for targeted beneficiaries to reduce

utilization of pharmaceuticals, emergency departments and inpatient hospital stays. Establishing a

targeted benefit requires amendments to or new rules, regulations and procedures pertaining to

coverage for the Medicaid populations affected as well as a Category II change to the Global

Consumer Choice Compact Waiver in those areas where additional authority is warranted under

the terms and conditions of the demonstration agreement.

     (d) Health Homes – EOHHS Departments. The Medicaid single state agency proposes to

pursue authorization from the Centers for Medicare and Medicaid Services (CMS) for the

purposes of accessing additional federal matching funds for services provided through the

departments that are integrated in accordance with the Health Home Initiative established under

the federal Patient Protection and Affordable Health Care Act of 2010. This includes, but is not

limited to, behavioral healthcare services provided through the department of behavioral

healthcare, developmental disabilities, and hospitals, and CEDARR services available through the

department of human services as well as other services deemed qualified under the Health Home

Initiative by the Medicaid single state agency. As a condition of obtaining approval to participate

in the Initiative, the single state agency is required to submit a Medicaid state plan amendment

and any waiver changes that may be mandated by CMS thereafter. Also, each of the EOHHS

departments participating may be required to adopt new or amended rules, regulations and

procedures related to the populations and/or providers affected upon implementation.

     (e) Medicaid Hospital Rate Reform- Outpatient Payments. The Medicaid single state

agency is proposing a restructuring of the payment methodology for certain Medicaid funded out-

patient hospital services. Under the terms and conditions of the Global Consumer Choice

Compact Waiver, provider rate reforms such as those proposed require a Category II change.

Certain regulations, rules and procedures pertaining to provider payment rates may also require

revision.

     (f) Medicaid Money Follows the Person Demonstration. The Medicaid single state

agency has been accepted to participate in the federal Money Follows the Person Demonstration,

which provides enhanced funding for certain services provided to Medicaid long-term care

beneficiaries receiving care and support at home or in the community. Although no changes to the

Global Consumer Choice Compact Waiver are expected to be necessary during implementation

of the demonstration, certain new or amended rules, regulations and procedures may be required

to take full advantage of the federal funding available for transition and diversion services

authorized under the Money Follows the Person Demonstration.

     (g) System of Care Implementation -- Department of Children, Youth and Families

(DCYF). The DCYF proposes to continue implementation of comprehensive reform of the system

of care for children at risk for or requiring out-of-home placement and their families. Components

of implementation involve restructuring the payment methodology for certain Medicaid funded

services and establishing prior approval for the duration of residential services, paid in part or in

full by Medicaid. Accordingly, the DCYF and Medicaid single state agency are required to

pursue Category II changes to the Global Consumer Choice Compact Waiver in those areas

where additional authority is warranted for implementation to proceed under the terms and

conditions of the demonstration agreement. The DCYF may adopt or amend rules, regulations

and procedures as appropriate, once such federal authorities have been secured.

     (h) Medicaid Coverage for Costs Not Otherwise Matchable (CNOM) for DCYF parent

aides and other home-based services. The DCYF proposes to begin Medicaid claiming for certain

core home and community based services, approved under the Global Consumer Choice Compact

Waiver, that are provided to children and families at risk for Medicaid and/or out of home

placement. The DCYF and Medicaid single state agency are required to obtain the necessary

Category I or Category II changes necessary to begin this claiming.

     (i) Project Sustainability for Persons with Development Disabilities –Department of

Behavioral Healthcare, Developmental Disabilities, and Hospitals (DBHDDH). The DBHDDH

proposes to continue system reforms that are changing how beneficiaries are assessed for services

and the manner in which services are obtained as well as the payment structure. Because

implementation of this proposal is related to adoption of a new payment structure for a Medicaid

funded service, a Category II change is required under the terms and conditions established for

the Global Consumer Choice Compact Waiver. Further, implementation of Project Sustainability

may also require changes to the rules, regulations and procedures related to Medicaid services for

persons with developmental disabilities served by the DBHDDH;

     (j) RIte Care Cost Sharing Requirements. The department of humans services will make

the necessary changes to raise the RIte Care monthly cost sharing requirement to five percent

(5%) of family income as outlined in Rhode Island general law sections 40-8-4.4 and 40-8-12

effective October 1, 2011. Implementation of these modifications require changes to the rules,

regulations and procedures related to managed care for the populations affected and category II

changes to the global consumer choice compact waiver in those areas where additional authority

under the terms and conditions of the demonstration agreement are warranted; now therefore, be

it

     RESOLVED, That the general assembly hereby approves proposals (a) through (j) listed

above to amend the demonstration; and be it further

     RESOLVED, That the secretary of the office of health and human services is authorized

to pursue and implement any waiver amendments, category II or category III changes, state plan

amendments and/or changes to the applicable department’s rules, regulations and procedures

approved herein and as authorized by § 42-12.4-7; and be it further

     RESOLVED, That this Joint resolution shall take effect upon passage.

 

     SECTION 2. The state medical assistance program includes a comprehensive managed

care design to deliver services to various populations. The general assembly finds that a review of

the current system is necessary to determine if the design meets the goals of increased efficiency,

reduced cost, curtailment of high cost services, and the development of meaningful incentives to

promote the utilization of primary care services. The review shall include measures of program

effectiveness, services utilization, quality measures, and utilization patterns as compared to other

payers. Recommendations with respect to the design the state medical assistance program should

include, but not be limited to, the scope of services included in the medical assistance program

managed care contracts, alternatives that promote meaningful innovation and cost efficiency, and

alternative designs to promote the goals stated therein.

     The executive office of health and human services is directed to report the findings and

recommendations contained in the review no later than January 1, 2012, with copies to the

speaker of the house, senate president, chairs of the house and senate finance committees and the

house and senate fiscal advisors.

 

     SECTION 3. Integration of Care and Financing for Medicare and Medicaid Beneficiaries.

     (a) Expansion and integration of care management strategies. By July 2012, the

department of human services shall establish a contractual agreement between the Medicaid

agency and a contractor (e.g., managed care entity) to manage primary, acute and long-term care

services for Medicaid-only beneficiaries and for individuals dually eligible for Medicaid and

Medicare.

     The department is directed to seek federal authority from the Centers for Medicare and

Medicaid Services, including the negotiation of an agreement for the state to share in any savings

that accrue to the Medicare program as a result of this initiative. The changes in service delivery

will require changes to the rules, regulations and procedures governing this area for Medicaid-

only and dually eligible beneficiaries, as well as Category II changes to the Global Consumer

Choice Compact Waiver authorizing the expansion of managed care to new service areas and

populations.

     The department shall present a report on this initiative to the Permanent Joint Legislative

Committee on Health Care Oversight and Chairpersons of the House and Senate Finance

Committees no later than December 31, 2011.