SF 2330 (LSB 6121SV (1) 85)

SENATE FILE 2330

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SSB 3200)

A BILL FOR

An Act relating to reimbursement of community mental health centers under the medical assistance program for the fiscal year beginning July 1, 2013, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  2013 Iowa Acts, chapter 138, section 29, subsection 1, paragraph n, is amended to read as follows:
   n.  For the fiscal year beginning July 1, 2013, the reimbursement rates for inpatient mental health services provided at hospitals shall be increased by 1 percent over the rates in effect on June 30, 2013, subject to Medicaid program upper payment limit rules; community mental health centers and providers of mental health services to county residents pursuant to a waiver approved under section 225C.7, subsection 3, shall be reimbursed at 100 percent of the reasonable costs for the provision of services to recipients of medical assistance; and psychiatrists shall be reimbursed at the medical assistance program fee-for-service rate.
    Sec. 2.  2013 Iowa Acts, chapter 138, section 29, subsection 1, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0o.  For the fiscal year beginning July 1, 2013, community mental health centers may choose to be reimbursed for the services provided to recipients of medical assistance through either of the following options:
   (1)  For 100 percent of the reasonable costs of the services.
   (2)  In accordance with the alternative reimbursement rate methodology established by the medical assistance program’s managed care contractor for mental health services and approved by the department of human services.
    Sec. 3.  EMERGENCY RULES.  The department of human services may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this Act and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 5.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to July 1, 2013.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to reimbursement of community mental health centers under the medical assistance (Medicaid) program for the fiscal year beginning July 1, 2013, by amending the reimbursement provision in 2013 Iowa Acts, chapter 138 (SF 446).
   Under SF 446, reimbursement for a service provided by a community mental health center under the Medicaid program was established at 100 percent of the reasonable costs of the service. The bill allows a center to choose instead to be reimbursed in accordance with the alternative reimbursement rate methodology established by the Medicaid program’s managed care contractor for mental health services that was approved by the department of human services.
   The department is authorized to adopt administrative rules to implement the bill without using the regular notice and review processes under Code chapter 17A.
   The bill takes effect upon enactment and is retroactively applicable to July 1, 2013.