ARTICLE 19 AS AMENDED

RELATING TO MEDICAL ASSISTANCE

 

     SECTION 1. Sections 40-8-13.4, 40-8-17 and 40-8-19 of the General Laws in Chapter

40-8 entitled "Medical Assistance" are hereby amended to read as follows:

 

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

services.-- (a) The department executive office of health and 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 executive office

of health and human services shall:

     (1)(A) With respect to inpatient services for persons in fee for service Medicaid, which is

non-managed care, 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. The department executive office will

review the DRG payment method and the DRG base price annually, making adjustments as

appropriate in consideration of such elements as trends in hospital input costs, patterns in hospital

coding, beneficiary access to care, and the Center for Medicare and Medicaid Services national

CMS Prospective Payment System (IPPS) Hospital Input Price index. 

     (B) With respect to inpatient services, (i) it is required as of January 1, 2011 until

December 31, 2011, that the Medicaid managed care payment rates between each hospital and

health plan shall not exceed ninety and one tenth percent (90.1%) of the rate in effect as of June

30, 2010. Negotiated increases in inpatient hospital payments for each annual twelve (12) month

period beginning January 1, 2012 may not exceed the Centers for Medicare and Medicaid

Services national CMS Prospective Payment System (IPPS) Hospital Input Price index for the

applicable period; (ii) provided, however, for the twelve (12) month period beginning July 1,

2013 the Medicaid managed care payment rates between each hospital and health plan shall not

exceed the payment rates in effect as of January 1, 2013; (iii) negotiated increases in inpatient

hospital payments for each annual twelve (12) month period beginning July 1, 2014 may not

exceed the Centers for Medicare and Medicaid Services national CMS Prospective Payment

System (IPPS) Hospital Input Price Index, less Productivity Adjustment, for the applicable

period; (iv) The Rhode Island department executive office of health and human services will

develop an audit methodology and process to assure that savings associated with the payment

reductions will accrue directly to the Rhode Island Medicaid program through reduced managed

care plan payments and shall not be retained by the managed care plans; (iii) (v) All hospitals

licensed in Rhode Island shall accept such payment rates as payment in full; and (iv) (vi) for all

such hospitals, compliance with the provisions of this section shall be a condition of participation

in the Rhode Island Medicaid program. 

     (2) With respect to outpatient services and notwithstanding any provisions of the law to

the contrary, for persons enrolled in fee for service Medicaid, the department executive office will

reimburse hospitals for outpatient services using a rate methodology determined by the

department executive office and in accordance with federal regulations. Fee-for-service outpatient

rates shall align with Medicare payments for similar services. Changes Notwithstanding the

above, there shall be no increase in the Medicaid fee-for-service outpatient rates effective July 1,

2013. Thereafter, changes to outpatient rates will be implemented on July 1 each year and shall

align with Medicare payments for similar services from the prior federal fiscal year. With respect

to the outpatient rate, (i) it is required as of January 1, 2011 until December 31, 2011, that the

Medicaid managed care payment rates between each hospital and health plan shall not exceed one

hundred percent (100%) of the rate in effect as of June 30, 2010. Negotiated increases in hospital

outpatient payments for each annual twelve (12) month period beginning January 1, 2012 may

not exceed the Centers for Medicare and Medicaid Services national CMS Outpatient Prospective

Payment System (OPPS) hospital price index for the applicable period.; (ii) provided, however,

for the twelve (12) month period beginning July 1, 2013 the Medicaid managed care outpatient

payment rates between each hospital and health plan shall not exceed the payment rates in effect

as of January 1, 2013; (iii) negotiated increases in outpatient hospital payments for each annual

twelve (12) month period beginning July 1, 2014 may not exceed the Centers for Medicare and

Medicaid Services national CMS Outpatient Prospective Payment System (OPPS) Hospital Input

Price Index, less Productivity Adjustment, for the applicable period.

     (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 executive

office the opportunity to conduct value based purchasing of inpatient care. 

     (d) The director secretary of the department executive office of health and 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 executive office 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 executive

office 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

executive office 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. For hospital fiscal

year 2010 and all subsequent fiscal years, hospitals will not be required to submit year-end

settlement reports on payments for outpatient services. For hospital fiscal year 2011 and all

subsequent fiscal years, hospitals will not be required to submit year-end settlement reports on

claims for hospital inpatient services. Further, for hospital fiscal year 2010, hospital inpatient

claims subject to settlement shall include only those claims received between October 1, 2009

and June 30, 2010.

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

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

in any event be no later than March 30, 2010, at which time the provisions of §§ 40-8-13.2, 27-

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

     (h) The director of the Department of Human Services shall establish an independent

study commission comprised of representatives of the hospital network, representatives from the

communities the hospitals serve, state and local policy makers and any other stakeholders or

consumers interested in improving the access and affordability of hospital care.

     The study commission shall assist the director in identifying: issues of concern and

priorities in the community hospital system, the delivery of services and rate structures, including

graduate medical education and training programs; and opportunities for building sustainable and

effective pubic-private partnerships that support the missions of the department and the state’s

community hospitals. 

     The director of the Department of Human Services shall report to the chairpersons of the

House and Senate Finance Committees the findings and recommendations of the study

commission by December 31, 2010.

 

     40-8-17. Waiver request. -- (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 an extension of the section 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. amended, as appropriate, and renamed to

reflect the state's effort to coordinate all publicly financed healthcare. The secretary of the office

shall ensure that the state's health and human services departments and the people and

communities they serve in the Medicaid program shall have the opportunity to contribute to and

collaborate in the formulation of any request for a new waiver, waiver extension and/or state plan

amendment(s). Any such actions shall: (1) continue efforts to re-balance the system of long-term

services and supports by assisting people in obtaining care in the most appropriate and least

restrictive setting; (2) pursue further utilization of care management models that promote

preventive care, offer a health home, and provide an integrated system of services; (3) use smart

payments and purchasing to finance and support Medicaid initiatives that fill gaps in the

integrated system of care; and (4) recognize and assure access to non-medical services and

supports, such as peer navigation and employment and housing stabilization services, that are

essential for optimizing a person's health, wellness and safety and that reduce or delay the need

for long-term services and supports.

      (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. or any

extension thereof, as amended and/or renamed under the authority provided in this section.

 

     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

executive office of health and human services shall promulgate or modify the principles of

reimbursement for nursing facilities in effect as of July 1, 2011 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 executive office of health and human services (“Executive Office”) 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

replace the current cost based methodology rates with rates based on a price based methodology

to be paid to all facilities with recognition of the acuity of patients and the relative Medicaid

occupancy, and to include the following elements to be developed by the executive office:

     (i) A direct care rate adjusted for resident acuity;

     (ii) An indirect care rate comprised of a base per diem for all facilities;

     (iii) A rearray of costs for all facilities every three (3) years beginning October, 2015,

which may or may not result in automatic per diem revisions;

     (iv) Application of a fair rental value system;

     (v) Application of a pass-through system; and

     (vi) Adjustment of rates by the change in a recognized national nursing home inflation

index to be applied on October 1st of each year, beginning October 1, 2012. This adjustment will

not occur on October 1, 2013, but will resume on October 1, 2014. Said inflation index shall be

applied without regard for the transition factor in subsection (b)(2) below.

     (b) Transition to full implementation of rate reform. For no less than four (4) years after

the initial application of the price-based methodology described in subdivision (a)(2) to payment

rates, the department executive office of health and human services shall implement a transition

plan to moderate the impact of the rate reform on individual nursing facilities. Said transition

shall include the following components:

     (1) No nursing facility shall receive reimbursement for direct care costs that is less than

the rate of reimbursement for direct care costs received under the methodology in effect at the

time of passage of this act; and

     (2) No facility shall lose or gain more than five dollars ($5.00) in its total per diem rate

the first year of the transition. The adjustment to the per diem loss or gain may be phased out by

twenty-five percent (25%) each year; and

     (3) The transition plan and/or period may be modified upon full implementation of

facility per diem rate increases for quality of care related measures. Said modifications shall be

submitted in a report to the general assembly at least six (6) months prior to implementation.

 

     SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

 

CHAPTER 40-8.12

HEALTH CARE FOR ADULTS

 

     40-8.12-1. Purpose. -- Pursuant to section 42-12.3-2, it is the intent of the general

assembly to create access to comprehensive health care for uninsured Rhode Islanders. The

Rhode Island Medicaid program has become an important source of insurance coverage for low

income pregnant women, families with children, elders, and persons with disabilities who might

not be able otherwise to obtain or afford health care. Under the U.S. Patient Protection and

Affordable Care Act (ACA) of 2010, all Americans will be required to have health insurance, with

some exceptions, beginning in 2014. Federal funding is available with ACA implementation to

help pay for health insurance for low income adults, ages nineteen (19) to sixty-four (64), who do

not qualify for Medicaid eligibility under Rhode Island general and public laws. It is the intent of

the general assembly, therefore, to implement the Medicaid expansion for adults without

dependent children authorized by the ACA, to extend health insurance coverage to these Rhode

Islanders and further the goal established in section 42-12.3-2 in1993.

 

     40-8.12-2. Eligibility.-- (a) Medicaid coverage for non-pregnant adults without children.

There is hereby established, effective January 1, 2014, a category of Medicaid eligibility pursuant

to Title XIX of the Social Security Act, as amended by the U.S. Patient Protection and

Affordable Care Act (ACA) of 2010, 42 U.S.C. section 1396u-1, for adults ages nineteen (19) to

sixty-four (64) who do not have dependent children and do not qualify for Medicaid under Rhode

Island general laws applying to families with children and adults who are blind, aged or living

with a disability. The executive office of health and human services is directed to make any

amendments to the Medicaid state plan and waiver authorities established under title XIX

necessary to implement this expansion in eligibility and assure the maximum federal contribution

for health insurance coverage provided pursuant to this chapter.  

     (b) Income. The secretary of the executive office of health and human services is

authorized and directed to amend the Medicaid Title XIX state plan and, as deemed necessary,

any waiver authority to effectuate this expansion of coverage to any Rhode Islander who qualifies

for Medicaid eligibility under this chapter with income at or below one hundred and thirty-three

percent (133%) the federal poverty level, based on modified adjusted gross income.  

     (c) Delivery system. The executive office of health and human services is authorized and

directed to apply for and obtain any waiver authorities necessary to provide persons eligible under

this chapter with managed, coordinated health care coverage consistent with the principles set

forth in section 42-12.4, pertaining to a health care home.

 

     40-8.12-3. Premium assistance program.(a) The office of health and human services

is directed to amend its rules and regulations to implement a premium assistance program for

adults with dependent children, enrolled in the state's health benefits exchange, whose annual

income and resources meet the guidelines established in section 40-8.4-4 in effect on December

1, 2013. The premium assistance will pay one-half of the cost of a commercial plan that a parent

may incur after subtracting the cost-sharing requirement under section 40-8.4-4 as of December

31, 2013 and any applicable federal tax credits available. The office is also directed to amend the

1115 waiver demonstration extension and the medical assistance title XIX state plan for this

program if it is determined that it is eligible for funding pursuant to title XIX of the social

security act.

     (b) The office of health and human services shall require any individual receiving

benefits under a state funded healthcare assistance program to apply for any health insurance for

which he or she is eligible, including health insurance available through the health benefits

exchange. Nothing shall preclude the state from using funds appropriated for affordable care act

transition expenses to reduce the impact on an individual who has been transitioned from a state

program to a health insurance plan available through the health benefits exchange. It shall not be

deemed cost effective for the state if it would result in a loss of benefits or an increase in the cost

of health care services for the person above an amount deemed de minimus as determined by state

regulation.

 

     SECTION 3. Section 42-12.4-8 of the General Laws in Chapter 42-12.4 entitled "The

Rhode Island Medicaid Reform Act of 2008" is hereby amended to read as follows:

 

     42-12.4-8. Demonstration termination. -- Demonstration expiration or 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 an

extension or renewal of the section 1115 research and demonstration waiver or any new waiver(s)

that, at a minimum, ensure continuation of the waiver authorities in existence prior to the

acceptance of the demonstration. The office shall ensure that any such actions are conducted in

accordance with applicable federal guidelines pertaining to section 1115 demonstration waiver

renewals, extensions, suspensions or terminations. The department of human services and the

executive office of health and human services to the extent possible shall ensure that said waivers

waiver authorities are reinstated prior to any suspension, termination, or expiration of the

demonstration.

 

     SECTION 4. Section 40-8.4-4 of the General Laws in Chapter 40-8.4 entitled "Health

Care For Families" is 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 office of

health and 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 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. section 1397 et seq. 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 secretary of the department office of health and 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%) one hundred thirty-three percent (133%) 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 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 fifty percent

(150%); and provided, further, that cost-sharing shall not be required for pregnant women or

children under age one.

 

     SECTION 5. Section 40-8.4-12 of the General Laws in Chapter 40-8.4 entitled "Health

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

 

     40-8.4-12. RIte Share Health Insurance Premium Assistance Program. -- (a) Basic

RIte Share Health Insurance Premium Assistance Program. - The department office of health and

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 families with incomes up to one hundred seventy-five percent (175%)

two hundred fifty percent (250%) of the federal poverty level who have access to employer-based

health insurance. The state plan amendment shall require eligible individuals families 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 office of health

and 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 families eligible for RIte Care under this chapter or chapter 12.3 of title

42 with incomes equal to or greater than 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 office of health and human services shall require any individual family 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 office

of health and 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 office. The

department office 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 office of health and 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. section 1397 et seq.

      (f) Implementation by regulation. - The department office of health and 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 86. Rhode Island Medicaid Reform Act of 2008.

     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 II or III 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 as 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 Rates - Eliminate Rate Increase. The Medicaid agency

proposes to eliminate the projected nursing facility rate increase and associated hospice rate

increase that would otherwise become effective during state fiscal year 2014. A Category II

change is required to implement this proposal under the terms and conditions of the Global

Consumer Choice Compact Waiver. Further, this change may also require the adoption of new or

amended rules, regulations and procedures.

     (b) Medicaid Hospital Payment Rates - Eliminate Adjustments. The Medicaid single state

agency proposes to reduce hospital payments by eliminating the projected inpatient and outpatient

hospital rate increase for state fiscal year 2014. A Category II change is required to implement

this proposal under the terms and conditions of the Global Consumer Choice Compact Waiver.

Further, this change may also require the adoption of new or amended rules, regulations and

procedures.

     (c) Integrated Care initiative - Implementation Phase-in. The Medicaid single state

agency proposes to continue implementation of the Medicaid Integrated Care Initiative for Adults

authorized under the Rhode Island Medicaid Reform Act of 2008, as amended in 2011. Moving

the initiative forward may require Category II changes under the terms and conditions of the

Global Consumer Choice Compact Waiver and the adoption of new or amended rules, regulations

and procedures.

     (d) BHDDH System Reforms - implementation of Employment First Initiative. As part of

ongoing reforms promoting rehabilitation services that enhance a person’s dignity, self-worth and

connection to the community, the Department of Behavioral Healthcare, Developmental

Disabilities, and Hospitals proposes to change Medicaid financing to support the Employment

First initiative. The initiative uses reductions in Medicaid payments to provide incentives for

service alternatives that optimize health and independence. The resulting changes in payment

rates may require Category II changes under the terms and conditions of the Global Consumer

Choice Compact Waiver and the adoption of new or amended rules, regulations and procedures.

     (e) Costs Not Otherwise Matchable (CNOM) Federal Funding. Implementation of the

U.S. Patient Protection and Affordable Care Act of 2010 will render it unnecessary for the

Medicaid agency to continue to pursue federal CNOM funding for services to certain newly

Medicaid eligible populations served by the Executive Office of Health and Human Services, the

Department of Human Services and the Department of Behavioral Healthcare, Developmental

Disabilities and Hospitals. Category II changes may be necessary under the terms and conditions

of the Global Consumer Choice Compact Waiver to facilitate the transition of the affected people

and services to full Medicaid coverage.

     (f) Approved Authorities: Section 1115 Waiver Demonstration Extension. The Medicaid

agency proposes to implement authorities approved under the Section 1115 waiver demonstration

extension request - formerly known as the Global Consumer Choice Waiver - that (1) continue

efforts to re-balance the system of long term services and supports by assisting people in

obtaining care in the most appropriate and least restrictive setting; (2) pursue further utilization of

care management models that offer a health home, promote access to preventive care, and provide

an integrated system of services; (3) use smart payments and purchasing to finance and support

Medicaid initiatives that fill gaps in the integrated system of care; and (4) recognize and assure

access to non-medical services and supports, such as peer navigation and employment and

housing stabilization services, that are essential for optimizing a person’s health, wellness and

safety and that reduce or delay the need for long term services and supports.

     (g) Medicaid Requirements and Opportunities under the US. Patient Protection and

Affordable Care Act of 2010. The Medicaid agency proposes to pursue any requirements and/or

opportunities established under the U.S. Patient Protection and Affordable Care Act of 2010 that

may warrant a Medicaid State Plan Amendment and/or a Category II or III change under the

terms and conditions of the Global Consumer Choice Compact Waiver or its successor or any

extension thereof. Such opportunities and requirements include, but are not limited to: (1) the

continuation of coverage for youths who had been in substitute care who are at least eighteen (18)

years old but are not yet twenty-six (26) years of age, and who are eligible for Medicaid coverage

under the Foster Care Independence Act of 1999 (2) the maximizing of Medicaid federal

matching funds for any services currently administered by the health and human services

agencies that are authorized under Rhode Island general and public laws. Any such actions the

Medicaid agency takes shall not have an adverse impact on beneficiaries or cause there to be an

increase in expenditures beyond the amount appropriated for state fiscal year 2014. Now,

therefore, be it

     (h) RIte Care Parents Eligibility. The Medicaid single state agency proposes to reduce

the RIte Care coverage income eligibility threshold for parents to one hundred thirty-three percent

(133%) of the federal poverty level. A Category III change is required to implement this proposal

under the terms and conditions of the Global Consumer Choice Compact Waiver. Further this

change requires the adoption of amended rules, regulations and procedures.

     (i) Cortical Integrative Therapy. The Medicaid single state agency shall seek to create a

new service entitled Cortical Integrative Therapy. This service is designed to effectuate either

neuronal excitation or inhibition through temporal and spatial summation to strengthen synaptic

connections. Creating this new service may require Category II changes under the terms and

conditions of the Global Consumer Choice Waiver and the adoption of new or amended rules,

regulations, and procedures;

     Now, therefore, be it

     RESOLVED, that the general assembly hereby approves proposals (a) through (f)(i)

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.

 

     SECTION 7. Section 4 of this article shall take effect on January 1, 2014. The remainder

of this Article shall take effect upon passage.