HB1950: MEDICAID TECHNICAL ASSISTANCE

Legislative Summary

Amends the Illinois Public Aid Code. In a provision concerning safety-net hospitals, provides that beginning July 1, 2020 and ending on December 31, 2026, a hospital that would have qualified for the rate year beginning October 1, 2020 and was designated a federal rural referral center on October 1, 2020 shall be a Safety-Net Hospital. In provisions concerning hospital provider funding, provides that certain annual assessments on inpatient services and outpatient services shall be imposed on each hospital provider for calendar years 2021 through 2026 (rather than for calendar years 2021 and 2022). Makes changes to the definition of "Assessment Adjustment". Extends the period during which certain transfers shall be made from the Hospital Provider Fund. Contains provisions concerning: (i) the applicable reimbursement factor from July 1, 2020 through December 31, 2022 and January 1, 2023 through December 31, 2026; and (ii) fee for-service supplemental payments beginning January 1, 2023. In a provision concerning the classification of Illinois hospitals for the purpose of allocating the funds included in capitation payments to managed care organizations, defines "critical access hospital" and "public hospital". Provides that, beginning January 1, 2023 and each calendar year thereafter, assignment to the safety-net class shall be based on the annual safety-net rate year beginning 15 months before the beginning of the first Payout Quarter of the calendar year. Makes changes to provisions concerning high Medicaid hospitals and defines "regional high volume hospital". Provides that, from January 1, 2023 through December 31, 2023, the Department of Healthcare and Family Services shall establish the amounts that shall be allocated to the hospital class directed payment fixed pools identified under a specified provision of the Code for the quarterly development of a uniform per unit add-on. Requires the Department to ensure that hospitals assigned to the fixed pools are paid no less than 95% of the annual initial rate for each 6-month period of each annual payout period. Contains provisions concerning directed payment amounts established by the Department for the Payout Quarter beginning January 1, 2023; pass-through payments for calendar year 2023; the sum of the total estimated annual payments to each hospital class for calendar year 2023; and other matters. Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that a general acute care hospital is authorized to file a notice with the Department of Public Health and the Health Facilities and Services Review Board to establish an acute mental illness category of service in accordance with the Illinois Health Facilities Planning Act and add authorized acute mental illness beds if the following conditions are met: (i) the general acute care hospital qualifies as a safety-net hospital as determined by the Department of Healthcare and Family Services at the time of filing the notice or for the year immediately prior to the date of filing the notice; (ii) the notice seeks to establish no more than 24 authorized acute mental illness beds; and (iii) the notice seeks to reduce the number of authorized beds in another category of service to offset the number of authorized acute mental illness beds. In provisions requiring the Department of Healthcare and Family Services to pay certain amounts to the human poison control center designated under the Poison Control System Act, provides that not less than $3,750,000 shall be paid for State fiscal years 2021 through 2026 (rather than for State fiscal year 2021 and 2022) and not less than $1,875,000 shall be paid for the period July 1, 2026 through December 31, 2026 (rather than for the period July 1, 2022 through December 31, 2022). Amends the Department of Public Health Powers and Duties Law. Provides that, by February 1, 2023, the Department of Public Health and the Department of Healthcare and Family Services shall provide a joint report to the General Assembly on options and recommendations for the establishment of a permanent Safety-Net Hospital Health Equity and Access Leadership (HEAL) Grant Program. Provides that the Departments of Public Health and Healthcare and Family Services may consult with the statewide association representing a majority of hospitals and safety-net hospitals on the report. Sets forth information that may be included in the report, including, but not limited to: (1) criteria for a safety-net hospital to be eligible for the program; (2) potential projects eligible for grant funds, which may include projects to reduce health disparities, advance health equity, or improve access to or the quality of healthcare services; and (3) potential strategies to generate federal Medicaid matching funds for expenditures under the program. Amends the Medical Assistance Article of the Illinois Public Aid Code. In provisions requiring the Department of Healthcare and Family Services to make adjustment payments for inpatient services to hospitals that meet certain requirements, provides that such adjustment payments shall be made to a hospital that reopens a previously closed hospital facility within 4 (rather than 3) calendar years of the hospital facility's closure. Amends the Illinois Income Tax Act. Extends the income tax credit for certain hospitals through taxable years ending on or before December 31, 2027 (currently, December 31, 2022). Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain hospital exemptions apply on a continuous basis. Effective immediately.