House of Representatives

SB 1079

appropriation: AHCCCS; critical access hospitals

Sponsors: Senators Solomon, Verkamp, Bee, et al.

 

DP

Committee on Health

DPA S/E

Committee on Appropriations

X

Caucus and COW

This bill as introduced contains an Appropriation clause.

 

As Passed the House

 

SB 1079 appropriates $800,000 from the state general fund and $900,000 from the federal matching monies for a total of $1.7 million in both FY 2001-2001 and 2002-2003 to the Arizona Health Care Cost Containment System (AHCCCS) to increase reimbursement to critical access rural hospitals (CAH). 

 

The Appropriations Committee adopted a strike-everything amendment as follows:

 

The strike-everything amendment to SB 1079 makes several miscellaneous adjustments to the yet-to-be-enacted state budget by amending the General Appropriations Act (GAA) and the Supplemental Appropriations Act (SAA).  The striker also amends the GAA and the SAA, as well as makes statutory changes, in order to enable state agencies who contract with direct care service providers greater flexibility in increasing their pay rates.

 

Specific Provisions

1.                  Amends statute to allow the Department of Economic Security (DES) greater statutory flexibility in establishing its provider pay rate structure  and hospital reimbursement rates for community developmental disability (DD) service providers and subcontracted providers.  The rate structure would be based on the results of an annual study of the “adequacy and appropriateness” of Title 19 reimbursement rates, as opposed to prevailing market costs of the DD services.

 

2.                  Adds new statutory language requiring DES to contract with an independent consulting firm for that annual study of the adequacy and appropriateness of Title 19 reimbursement rates to service providers for the DD programs of both the Arizona Long-Term Care System (ALTCS) and the state-only program.  DES must include the results of the study in its yearly capitation rate request to AHCCCS.

 

3.                  Adds new statutory language requiring AHCCCS to contract for a similar study of Title 19 reimbursement rates to service providers for the elderly and physically disabled program of ALTCS.

 

4.                  Adds new statutory language requiring the Department of Health Services (DHS) to contract for a similar study of Title 19 reimbursement rates to service providers of behavioral health services.  DHS must include the results of that study in its yearly capitalization request to AHCCCS.

 

5.                  Amends the AHCCCS section of the GAA to add footnote language exempting AHCCCS from rule-making requirements for the purposes of implementing the finger-imaging enrollment program and requiring instead that hearings be held to give the public the opportunity to comment on the proposed rules.

 

6.                  Amends the GAA to strike footnote language in the AHCCCS budget stating that it is the Legislature’s intent that (1) AHCCCS allocate funds for the Long-Term Care program as a flat percentage increase across the total dollar value of all contracts in eligible categories, (2) community treatment providers allocate the adjustments for salary increases to direct care staff who provide direct care services for more than 80% of their work week and who earn less than $13 per hour, and that (3) funds be spent for ongoing pay adjustments and salary-related employee related expenses.  In that same section, new footnote language is added stating the Legislature’s intent that the pay adjustments be directed toward raising rates paid to providers receiving less than other providers providing similar services.

 

7.                  Amends the pay adjustments section of the GAA to require that the community treatment provider rates increases for DES, DHS, DJC and the Superior Court be equal to an average of 5%.  Footnote language in that section is also amended to state the Legislature’s intent that provider rate adjustments be directed towards raising rates paid to providers receiving less than others providing similar services, and its intent that the Long-Term Care and Developmental Disabilities cost centers in DES use the adjustment to reduce the number of different contract rates employed for each service type.

 

8.                  Amends the GAA to add new footnote language to the Corporation Commission budget section which allows some employees of the Commission to receive pay adjustments according to the statewide salary increase plan included in the budget if that adjustment is necessary to ensure that an employee of the Commission does not receive less under the provisions of the Commission’s own specialized pay adjustment plan.

 

9.                  Amends the GAA to reduce the Department of Revenue’s (DOR) FY 2002-2003 General Fund budget appropriation by ($344,100) and strike footnote language relating to the expenditure of those monies for computer projects.  The amendment then appropriates that same amount to DOR in FY 2001-2002 for reworking their transaction privilege tax database.

 

10.              Amends the GAA to reduce the Department of Transportation’s FY 2001-2002 and FY 2002-2003 state highway fund budget appropriation by $995,000 each year.

 

11.              Amends the SAA to shift the transfer of $15 million from the state corrections fund to the General Fund from June 30, 2002 to June 30, 2001.

 

12.              Appropriates $116,000 from the state lottery fund to the Lottery Commission to implement the Lottery’s new telecommunication contract.

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16.              45th Legislature                       

17.              First Regular Session    3          April 19, 2001

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