House Amendment 1362


PAG LIN




     1  1    Amend House File 841 as follows:
     1  2 #1.  By striking everything after the enacting
     1  3 clause and inserting the following:
     1  4                       <DIVISION I
     1  5                        IOWACARE
     1  6    Section 1.  NEW SECTION.  249J.1  TITLE.
     1  7    This chapter shall be known and may be cited as the
     1  8 "Iowacare Act".
     1  9    Sec. 2.  NEW SECTION.  249J.2  FEDERAL FINANCIAL
     1 10 PARTICIPATION == CONTINGENT IMPLEMENTATION.
     1 11    This chapter shall be implemented only to the
     1 12 extent that federal matching funds are available for
     1 13 nonfederal expenditures under this chapter.  The
     1 14 department shall not expend funds under this chapter,
     1 15 including but not limited to expenditures for
     1 16 reimbursement of providers and program administration,
     1 17 if appropriated nonfederal funds are not matched by
     1 18 federal financial participation.
     1 19    Sec. 3.  NEW SECTION.  249J.3  DEFINITIONS.
     1 20    As used in this chapter, unless the context
     1 21 otherwise requires:
     1 22    1.  "Department" means the department of human
     1 23 services.
     1 24    2.  "Director" means the director of human
     1 25 services.
     1 26    3.  "Expansion population" means the individuals
     1 27 who are eligible solely for benefits under the medical
     1 28 assistance program as provided in this chapter.
     1 29    4.  "Full benefit dually eligible Medicare Part D
     1 30 beneficiary" means a person who is eligible for
     1 31 coverage for Medicare Part D drugs and is
     1 32 simultaneously eligible for full medical assistance
     1 33 benefits pursuant to chapter 249A, under any category
     1 34 of eligibility.
     1 35    5.  "Full benefit recipient" means an adult who is
     1 36 eligible for full medical assistance benefits pursuant
     1 37 to chapter 249A under any category of eligibility.
     1 38    6.  "Medical assistance" or "Medicaid" means
     1 39 medical assistance as defined in section 249A.2.
     1 40    7.  "Medicare Part D" means the Medicare Part D
     1 41 program established pursuant to the Medicare
     1 42 Prescription Drug, Improvement, and Modernization Act
     1 43 of 2003, Pub L. No. 108=173.
     1 44    8.  "Minimum data set" means the minimum data set
     1 45 established by the centers for Medicare and Medicaid
     1 46 services of the United States department of health and
     1 47 human services for nursing home resident assessment
     1 48 and care screening.
     1 49    9.  "Nursing facility" means a nursing facility as
     1 50 defined in section 135C.1.
     2  1    10.  "Public hospital" means a public hospital as
     2  2 defined in section 249I.3.
     2  3    Sec. 4.  NEW SECTION.  249J.4  PURPOSE.
     2  4    It is the purpose of this chapter to propose a
     2  5 variety of initiatives to increase the efficiency,
     2  6 quality, and effectiveness of the health care system;
     2  7 to increase access to appropriate health care; to
     2  8 provide incentives to consumers to engage in
     2  9 responsible health care utilization and personal
     2 10 health care management; to reward providers based on
     2 11 quality of care and improved service delivery; and to
     2 12 encourage the utilization of information technology,
     2 13 to the greatest extent possible, to reduce
     2 14 fragmentation and increase coordination of care and
     2 15 quality outcomes.
     2 16                       DIVISION II
     2 17                   MEDICAID EXPANSION
     2 18    Sec. 5.  NEW SECTION.  249J.5  EXPANSION POPULATION
     2 19 ELIGIBILITY.
     2 20    1.  Except as otherwise provided in this chapter,
     2 21 an individual nineteen through sixty=four years of age
     2 22 shall be eligible solely for the expansion population
     2 23 benefits described in this chapter when provided
     2 24 through the expansion population provider network as
     2 25 described in this chapter, if the individual meets all
     2 26 of the following conditions:
     2 27    a.  The individual is not eligible for coverage
     2 28 under the medical assistance program in effect on
     2 29 April 1, 2005, or was eligible for coverage under the
     2 30 medical assistance program in effect on April 1, 2005,
     2 31 but chose not to enroll in that program.
     2 32    b.  The individual has a family income at or below
     2 33 two hundred percent of the federal poverty level as
     2 34 defined by the most recently revised poverty income
     2 35 guidelines published by the United States department
     2 36 of health and human services.
     2 37    c.  The individual fulfills all other conditions of
     2 38 participation for the expansion population described
     2 39 in this chapter, including requirements relating to
     2 40 personal financial responsibility.
     2 41    2.  Individuals otherwise eligible solely for
     2 42 family planning benefits authorized under the medical
     2 43 assistance family planning services waiver, effective
     2 44 January 1, 2005, as described in 2004 Iowa Acts,
     2 45 chapter 1175, section 116, subsection 8, may also be
     2 46 eligible for expansion population benefits provided
     2 47 through the expansion population provider network.
     2 48    3.  Individuals with family incomes below three
     2 49 hundred percent of the federal poverty level as
     2 50 defined by the most recently revised poverty income
     3  1 guidelines published by the United States department
     3  2 of health and human services may also be eligible for
     3  3 obstetrical and newborn care under the expansion
     3  4 population if deductions for the medical expenses of
     3  5 all family members would reduce the family income to
     3  6 one hundred eighty=five percent of the federal poverty
     3  7 level or below.
     3  8    4.  Enrollment for the expansion population may be
     3  9 limited, closed, or reduced and the scope and duration
     3 10 of expansion population services provided may be
     3 11 limited, reduced, or terminated if the department
     3 12 determines that federal medical assistance program
     3 13 matching funds or appropriated state funds will not be
     3 14 available to pay for existing or additional
     3 15 enrollment.
     3 16    5.  Eligibility for the expansion population shall
     3 17 not include individuals who have access to group
     3 18 health insurance or who were terminated from health
     3 19 insurance coverage in the six=month period immediately
     3 20 prior to application for coverage through the
     3 21 expansion population, unless such coverage was
     3 22 involuntarily terminated or the reason for not
     3 23 accessing group health insurance or for terminating
     3 24 coverage is allowed by rule of the department.
     3 25    6.  Each expansion population member shall provide
     3 26 to the department all insurance information required
     3 27 by the health insurance premium payment program.
     3 28    7.  The department shall contract with the
     3 29 administrators of county general relief to perform
     3 30 intake functions for the expansion population, but
     3 31 only at the discretion of each individual
     3 32 administrator of county general relief.
     3 33    Sec. 6.  NEW SECTION.  249J.6  EXPANSION POPULATION
     3 34 BENEFITS.
     3 35    1.  Beginning July 1, 2005, the expansion
     3 36 population shall be eligible for all of the following
     3 37 expansion population services:
     3 38    a.  Inpatient hospital procedures described in the
     3 39 diagnostic related group codes designated by the
     3 40 department.
     3 41    b.  Outpatient hospital services described in the
     3 42 ambulatory patient groupings or noninpatient services
     3 43 designated by the department.
     3 44    c.  Physician and advanced registered nurse
     3 45 practitioner services described in the current
     3 46 procedural terminology codes specified by the
     3 47 department.
     3 48    d.  Dental services described in the dental codes
     3 49 specified by the department.
     3 50    e.  Limited pharmacy benefits provided by an
     4  1 expansion population provider network hospital
     4  2 pharmacy and solely related to an appropriately billed
     4  3 expansion population service.
     4  4    f.  Transportation to and from an expansion
     4  5 population provider network provider only when
     4  6 provided by the provider or a volunteer.
     4  7    2.  Beginning no later than March 1, 2006, all
     4  8 expansion population members shall receive a single
     4  9 complete medical examination and personal health
     4 10 improvement plan within ninety days of enrollment in
     4 11 the program.  These services may be provided by an
     4 12 expansion population provider network physician,
     4 13 advanced registered nurse practitioner, or physician
     4 14 assistant or any other physician, advanced registered
     4 15 nurse practitioner, or physician assistant, available
     4 16 to any full benefit recipient including but not
     4 17 limited to such providers available through a free
     4 18 clinic under a contract with the department to provide
     4 19 these services or through federally qualified health
     4 20 centers or rural health clinics that employ a
     4 21 physician.
     4 22    3.  Beginning no later than July 1, 2006, expansion
     4 23 population members shall be provided all of the
     4 24 following:
     4 25    a.  Access to a pharmacy assistance clearinghouse
     4 26 program to match expansion population members with
     4 27 free or discounted prescription drug programs provided
     4 28 by the pharmaceutical industry.
     4 29    b.  Access to a medical information hotline,
     4 30 accessible twenty=four hours per day, seven days per
     4 31 week, to assist expansion population members in making
     4 32 appropriate choices about the use of emergency room
     4 33 and other health care services.
     4 34    4.  Membership in the expansion population shall
     4 35 not preclude an expansion population member from
     4 36 eligibility for services not covered under the
     4 37 expansion population for which the expansion
     4 38 population member is otherwise entitled under state or
     4 39 federal law.
     4 40    5.  Members of the expansion population shall not
     4 41 be considered full benefit dually eligible Medicare
     4 42 Part D beneficiaries for the purposes of calculating
     4 43 the state's payment under Medicare Part D, until such
     4 44 time as the expansion population is eligible for all
     4 45 of the same benefits as full benefit recipients under
     4 46 the medical assistance program.
     4 47    Sec. 7.  NEW SECTION.  249J.7  EXPANSION POPULATION
     4 48 PROVIDER NETWORK.
     4 49    1.  Expansion population members shall only be
     4 50 eligible to receive expansion population services
     5  1 through a provider included in the expansion
     5  2 population provider network.  Except as otherwise
     5  3 provided in this chapter, the expansion population
     5  4 provider network shall be limited to a publicly owned
     5  5 acute care teaching hospital located in a county with
     5  6 a population over three hundred fifty thousand, the
     5  7 university of Iowa hospitals and clinics, and the
     5  8 state hospitals for persons with mental illness
     5  9 designated pursuant to section 226.1 with the
     5 10 exception of the programs at such state hospitals for
     5 11 persons with mental illness that provide substance
     5 12 abuse treatment, serve gero=psychiatric patients, or
     5 13 treat sexually violent predators.
     5 14    2.  Expansion population services provided to
     5 15 expansion population members by providers included in
     5 16 the expansion population provider network shall be
     5 17 payable at the full benefit recipient rates.
     5 18    3.  Unless otherwise prohibited by law, a provider
     5 19 under the expansion population provider network may
     5 20 deny care to an individual who refuses to apply for
     5 21 coverage under the expansion population.
     5 22    Sec. 8.  NEW SECTION.  249J.8  EXPANSION POPULATION
     5 23 MEMBERS == FINANCIAL PARTICIPATION.
     5 24    1.  Beginning July 1, 2005, each expansion
     5 25 population member shall pay a monthly premium not to
     5 26 exceed one=twelfth of five percent of the member's
     5 27 annual family income to be paid on the last day of the
     5 28 month of coverage.  An expansion population member
     5 29 shall pay the monthly premium for a minimum of four
     5 30 consecutive months, regardless of the length of
     5 31 enrollment of the member.  An expansion population
     5 32 member shall not be required to pay any premium if the
     5 33 department determines that the total cost of
     5 34 activities related to collection of the premium would
     5 35 exceed ninety=five percent of the premium to be
     5 36 collected.  Timely payment of premiums, including any
     5 37 arrearages accrued from prior enrollment, is a
     5 38 condition of receiving any expansion population
     5 39 services.  An expansion population member shall also
     5 40 pay the same copayments required of other adult
     5 41 recipients of the medical assistance program.
     5 42    2.  The department may reduce the required out=of=
     5 43 pocket expenditures for an individual expansion
     5 44 population member based upon the member's increased
     5 45 wellness activities such as smoking cessation or
     5 46 compliance with the personal health improvement plan
     5 47 completed by the member.
     5 48    3.  The department shall submit to the governor and
     5 49 the general assembly by March 15, 2006, a design for
     5 50 each of the following:
     6  1    a.  An insurance cost subsidy program for expansion
     6  2 population members who have access to employer health
     6  3 insurance plans, provided that the design shall
     6  4 require that no less than fifty percent of the cost of
     6  5 such insurance shall be paid by the employer.
     6  6    b.  A health care account program option for
     6  7 individuals eligible for enrollment in the expansion
     6  8 population.  The health care account program option
     6  9 shall be available only to adults who have been
     6 10 enrolled in the expansion population for at least
     6 11 twelve consecutive calendar months.  Under the health
     6 12 care account program option, the individual would
     6 13 agree to exchange one year's receipt of benefits under
     6 14 the expansion population to which the individual would
     6 15 otherwise be entitled for a credit of up to a
     6 16 specified amount toward any medical assistance program
     6 17 covered service.  The balance in the health care
     6 18 account at the end of the year, if any, would be
     6 19 available for withdrawal by the individual.
     6 20    Sec. 9.  NEW SECTION.  249J.9  FUTURE EXPANSION
     6 21 POPULATION, BENEFITS, AND PROVIDER NETWORK GROWTH.
     6 22    1.  POPULATION.  The department shall contract with
     6 23 the division of insurance of the department of
     6 24 commerce or another appropriate entity to track, on an
     6 25 annual basis, the number of uninsured and underinsured
     6 26 Iowans, the cost of private market insurance coverage,
     6 27 and other barriers to access to private insurance for
     6 28 Iowans.  Based on these findings and available funds,
     6 29 the department shall make recommendations, annually,
     6 30 to the governor and the general assembly regarding
     6 31 further expansion of the expansion population.
     6 32    2.  BENEFITS.
     6 33    a.  The department shall not provide additional
     6 34 services to expansion population members without
     6 35 express authorization provided by the general
     6 36 assembly.
     6 37    b.  The department, upon the recommendation of the
     6 38 clinicians advisory panel established pursuant to
     6 39 section 249J.17, may change the scope and duration of
     6 40 any of the available expansion population services,
     6 41 but this subsection shall not be construed to
     6 42 authorize the department to make expenditures in
     6 43 excess of the amount appropriated for benefits for the
     6 44 expansion population.
     6 45    3.  EXPANSION POPULATION PROVIDER NETWORK.
     6 46    a.  The department shall not expand the expansion
     6 47 population provider network unless the department is
     6 48 able to pay for expansion population services provided
     6 49 by such providers at the full benefit recipient rates.
     6 50    b.  The department may limit access to the
     7  1 expansion population provider network by the expansion
     7  2 population to the extent the department deems
     7  3 necessary to meet the financial obligations to each
     7  4 provider under the expansion population provider
     7  5 network.  This subsection shall not be construed to
     7  6 authorize the department to make any expenditure in
     7  7 excess of the amount appropriated for benefits for the
     7  8 expansion population.
     7  9    Sec. 10.  NEW SECTION.  249J.10  MAXIMIZATION OF
     7 10 FUNDING FOR INDIGENT PATIENTS.
     7 11    1.  Unencumbered certified local matching funds may
     7 12 be used to cover the state share of the cost of
     7 13 services for the expansion population.
     7 14    2.  The department of human services shall include
     7 15 in its annual budget submission, recommendations
     7 16 relating to a disproportionate share hospital and
     7 17 indirect medical education allocation plan that
     7 18 maximizes the availability of federal funds for
     7 19 payments to hospitals for the care and treatment of
     7 20 indigent patients.
     7 21    3.  If state and federal law and regulations so
     7 22 provide and if federal disproportionate share hospital
     7 23 funds and indirect medical education funds are
     7 24 available under Title XIX of the federal Social
     7 25 Security Act, federal disproportionate share hospital
     7 26 funds and indirect medical education funds shall be
     7 27 distributed as specified by the department.
     7 28                      DIVISION III
     7 29               REBALANCING LONG=TERM CARE
     7 30    Sec. 11.  NEW SECTION.  249J.11  NURSING FACILITY
     7 31 LEVEL OF CARE DETERMINATION FOR FACILITY=BASED AND
     7 32 COMMUNITY=BASED SERVICES.
     7 33    The department shall amend the medical assistance
     7 34 state plan to provide for all of the following:
     7 35    1.  That nursing facility level of care services
     7 36 under the medical assistance program shall be
     7 37 available to an individual admitted to a nursing
     7 38 facility on or after July 1, 2005, who meets
     7 39 eligibility criteria for the medical assistance
     7 40 program pursuant to section 249A.3, if the individual
     7 41 also meets any of the following criteria:
     7 42    a.  Based upon the minimum data set, the individual
     7 43 requires limited assistance, extensive assistance, or
     7 44 has total dependence on assistance, provided by the
     7 45 physical assistance of one or more persons, with three
     7 46 or more activities of daily living as defined by the
     7 47 minimum data set which may include but are not limited
     7 48 to locomotion, dressing, eating, personal hygiene, or
     7 49 toileting.
     7 50    b.  The individual requires the establishment of a
     8  1 safe, secure environment due to moderate or severe
     8  2 impairment of cognitive skills for daily decision
     8  3 making.
     8  4    c.  The individual has established a dependency
     8  5 requiring residency in a medical institution for more
     8  6 than one year.
     8  7    2.  That an individual admitted to a nursing
     8  8 facility prior to July 1, 2005, and an individual
     8  9 applying for home and community=based services waiver
     8 10 services at the nursing facility level of care on or
     8 11 after July 1, 2005, who meets the eligibility criteria
     8 12 for the medical assistance program pursuant to section
     8 13 249A.3, shall also meet any of the following criteria:
     8 14    a.  Based on the minimum data set, the individual
     8 15 requires supervision or limited assistance, provided
     8 16 by the physical assistance of not more than one
     8 17 person, for one or more activities of daily living as
     8 18 defined by the minimum data set which may include but
     8 19 are not limited to locomotion, dressing, eating,
     8 20 toileting, personal hygiene, or bathing.
     8 21    b.  The individual requires the establishment of a
     8 22 safe, secure environment due to modified independence
     8 23 or moderate impairment of cognitive skills for daily
     8 24 decision making.
     8 25    3.  That, beginning July 1, 2005, if nursing
     8 26 facility level of care is determined to be medically
     8 27 necessary for an individual and the individual meets
     8 28 the nursing facility level of care requirements for
     8 29 home and community=based services waiver services
     8 30 under subsection 2, but appropriate home and
     8 31 community=based services are not available to the
     8 32 individual in the individual's community at the time
     8 33 of the determination or the provision of available
     8 34 home and community=based services to meet the skilled
     8 35 care requirements of the individual is not cost=
     8 36 effective, the criteria for admission of the
     8 37 individual to a nursing facility for nursing facility
     8 38 level of care services shall be the criteria in effect
     8 39 on June 30, 2005.
     8 40    Sec. 12.  NEW SECTION.  249J.12  SERVICES FOR
     8 41 PERSONS WITH MENTAL RETARDATION OR DEVELOPMENTAL
     8 42 DISABILITIES.
     8 43    1.  The department, in cooperation with the Iowa
     8 44 state association of counties, the Iowa association of
     8 45 community providers, and other interested parties,
     8 46 shall develop a case=mix adjusted reimbursement system
     8 47 plan for both institution=based and community=based
     8 48 services for persons with mental retardation or
     8 49 developmental disabilities for submission to the
     8 50 general assembly by January 1, 2007.  The department
     9  1 shall not implement the case=mix adjusted
     9  2 reimbursement system plan without express
     9  3 authorization by the general assembly.
     9  4    2.  The department, in consultation with the Iowa
     9  5 state association of counties, the Iowa association of
     9  6 community providers, and other interested parties,
     9  7 shall develop a plan for submission to the governor
     9  8 and the general assembly no later than July 1, 2007,
     9  9 to enhance alternatives for community=based care for
     9 10 individuals who would otherwise require care in an
     9 11 intermediate care facility for persons with mental
     9 12 retardation.  The plan shall not be implemented
     9 13 without express authorization by the general assembly.
     9 14    Sec. 13.  NEW SECTION.  249J.13  CHILDREN'S MENTAL
     9 15 HEALTH WAIVER SERVICES.
     9 16    1.  The department shall provide medical assistance
     9 17 waiver services to not more than three hundred
     9 18 children who meet the eligibility criteria for the
     9 19 medical assistance program pursuant to section 249A.3
     9 20 and also meet both of the following criteria:
     9 21    a.  The child requires behavioral health care
     9 22 services and qualifies for the level of care provided
     9 23 by a psychiatric medical institution for children.
     9 24    b.  The child has a diagnosable mental, behavioral,
     9 25 or emotional disorder of sufficient duration to meet
     9 26 diagnostic criteria specified within the diagnostic
     9 27 and statistical manual of mental disorders, fourth
     9 28 edition, that results in functional impairment that
     9 29 substantially interferes with or limits the child's
     9 30 role or functioning in the child's family, school, or
     9 31 community activities.
     9 32    2.  If necessary, the department shall renegotiate
     9 33 the medical assistance contract provisions for
     9 34 behavioral health services for the contractor to
     9 35 address the needs of the children described in
     9 36 subsection 1.
     9 37                       DIVISION IV
     9 38              HEALTH PROMOTION PARTNERSHIPS
     9 39    Sec. 14.  NEW SECTION.  249J.14  HEALTH PROMOTION
     9 40 PARTNERSHIPS.
     9 41    1.  SERVICES FOR ADULTS AT STATE MENTAL HEALTH
     9 42 INSTITUTES.  Beginning July 1, 2005, inpatient and
     9 43 outpatient hospital services at the state hospitals
     9 44 for persons with mental illness designated pursuant to
     9 45 section 226.1 shall be covered services under the
     9 46 medical assistance program.
     9 47    2.  DIETARY COUNSELING.  By July 1, 2006, the
     9 48 department shall design and begin implementation of a
     9 49 strategy to provide dietary counseling and support to
     9 50 child and adult recipients of medical assistance to
    10  1 assist these recipients in avoiding excessive weight
    10  2 gain or loss and to assist in development of personal
    10  3 weight loss programs for recipients determined by the
    10  4 recipient's health care provider to be clinically
    10  5 overweight.
    10  6    3.  ELECTRONIC MEDICAL RECORDS.  By October 1,
    10  7 2006, the department shall develop a practical
    10  8 strategy for expanding utilization of electronic
    10  9 medical recordkeeping by medical assistance program
    10 10 providers.  The plan shall focus, initially, on
    10 11 medical assistance program recipients whose quality of
    10 12 care would be significantly enhanced by the
    10 13 availability of electronic medical recordkeeping.
    10 14    4.  PROVIDER INCENTIVE PAYMENT PROGRAMS.  By
    10 15 January 1, 2007, the department shall design and
    10 16 implement a medical assistance provider incentive
    10 17 payment program based upon evaluation of public and
    10 18 private sector models.
    10 19    5.  HEALTH ASSESSMENT FOR MEDICAL ASSISTANCE
    10 20 RECIPIENTS WITH MENTAL RETARDATION OR DEVELOPMENTAL
    10 21 DISABILITIES.  The department shall work with the
    10 22 university of Iowa colleges of medicine, dentistry,
    10 23 nursing, pharmacy, and public health, and the
    10 24 university of Iowa hospitals and clinics to determine
    10 25 whether the physical and dental health of recipients
    10 26 of medical assistance who are persons with mental
    10 27 retardation or developmental disabilities are being
    10 28 regularly and fully addressed and to identify barriers
    10 29 to such care.  The department shall report the
    10 30 department's findings to the governor and the general
    10 31 assembly by January 1, 2007.
    10 32    6.  SMOKING CESSATION.  The department shall
    10 33 implement a program with the goal of reducing smoking
    10 34 among recipients of medical assistance who are
    10 35 children to less than one percent and among those who
    10 36 are adults to less than ten percent, by July 1, 2007.
    10 37    7.  DENTAL HOME FOR CHILDREN.  By July 1, 2008,
    10 38 every recipient of medical assistance who is a child
    10 39 twelve years of age or younger shall have a designated
    10 40 dental home and shall be provided with the dental
    10 41 screenings and preventive care identified in the oral
    10 42 health standards under the early and periodic
    10 43 screening, diagnostic, and treatment program.
    10 44                       DIVISION V
    10 45                IOWA MEDICAID ENTERPRISE
    10 46    Sec. 15.  NEW SECTION.  249J.15  COST AND QUALITY
    10 47 PERFORMANCE EVALUATION.
    10 48    Beginning July 1, 2005, the department shall
    10 49 contract with an independent consulting firm to do all
    10 50 of the following:
    11  1    1.  Annually evaluate and compare the cost and
    11  2 quality of care provided by the medical assistance
    11  3 program with the cost and quality of care available
    11  4 through private insurance and managed care
    11  5 organizations doing business in the state.
    11  6    2.  Annually evaluate the improvements by the
    11  7 medical assistance program in the cost and quality of
    11  8 services provided to Iowans over the cost and quality
    11  9 of care provided in the prior year.
    11 10    Sec. 16.  NEW SECTION.  249J.16  OPERATIONS ==
    11 11 PERFORMANCE EVALUATION.
    11 12    Beginning July 1, 2006, the department shall submit
    11 13 a report of the results of an evaluation of the
    11 14 performance of each component of the Iowa Medicaid
    11 15 enterprise using the performance standards contained
    11 16 in the contracts with the Iowa Medicaid enterprise
    11 17 partners.
    11 18    Sec. 17.  NEW SECTION.  249J.17  CLINICIANS
    11 19 ADVISORY PANEL == CLINICAL MANAGEMENT.
    11 20    1.  Beginning July 1, 2005, the medical director of
    11 21 the Iowa Medicaid enterprise, with the approval of the
    11 22 medical assistance director, shall assemble and act as
    11 23 chairperson for a clinicians advisory panel to
    11 24 recommend to the department clinically appropriate
    11 25 health care utilization management and coverage
    11 26 decisions for the medical assistance program which are
    11 27 not otherwise addressed by the Iowa medical assistance
    11 28 drug utilization review commission created pursuant to
    11 29 section 249A.24 or the medical assistance
    11 30 pharmaceutical and therapeutics committee established
    11 31 pursuant to section 249A.20A.  The meetings shall be
    11 32 open to the public except to the extent necessary to
    11 33 prevent the disclosure of personal health information.
    11 34    2.  The medical director of the Iowa Medicaid
    11 35 enterprise shall prepare an annual report summarizing
    11 36 the recommendations made by the panel and adopted by
    11 37 the department regarding clinically appropriate health
    11 38 care utilization management and coverage under the
    11 39 medical assistance program.
    11 40    Sec. 18.  NEW SECTION.  249J.18  HEALTH CARE
    11 41 SERVICES PRICING AND REIMBURSEMENT OF PROVIDERS.
    11 42    The department shall annually collect data on
    11 43 third=party payor rates in the state and, as
    11 44 appropriate, the usual and customary charges of health
    11 45 care providers, including the reimbursement rates paid
    11 46 to providers and by third=party payors participating
    11 47 in the medical assistance program.  The department
    11 48 shall consult with the division of insurance of the
    11 49 department of commerce in adopting administrative
    11 50 rules specifying the reporting format and guaranteeing
    12  1 the confidentiality of the information provided by the
    12  2 providers and third=party payors.  The department
    12  3 shall review the data and make recommendations to the
    12  4 governor and the general assembly regarding pricing
    12  5 changes and reimbursement rates annually by January 1.
    12  6                       DIVISION VI
    12  7                       GOVERNANCE
    12  8    Sec. 19.  NEW SECTION.  249J.19  MEDICAL ASSISTANCE
    12  9 PROJECTIONS AND ASSESSMENT COUNCIL.
    12 10    1.  A medical assistance projections and assessment
    12 11 council is created consisting of the following
    12 12 members:
    12 13    a.  The co=chairpersons and ranking members of the
    12 14 legislative joint appropriations subcommittee on
    12 15 health and human services, or a member of the
    12 16 appropriations subcommittee designated by the co=
    12 17 chairperson or ranking member.
    12 18    b.  The chairpersons and ranking members of the
    12 19 human resources committees of the senate and the house
    12 20 of representatives, or a member of the committee
    12 21 designated by the chairperson or ranking member.
    12 22    c.  The chairpersons and ranking members of the
    12 23 appropriations committees of the senate and the house
    12 24 of representatives, or a member of the committee
    12 25 designated by the chairperson or ranking member.
    12 26    2.  The council shall meet as often as deemed
    12 27 necessary, but shall meet at least quarterly.  The
    12 28 council may use sources of information deemed
    12 29 appropriate, and the department and other agencies of
    12 30 state government shall provide information to the
    12 31 council as requested.  The legislative services agency
    12 32 shall provide staff support to the council.
    12 33    3.  The council shall select a chairperson,
    12 34 annually, from its membership.  A majority of the
    12 35 members of the council shall constitute a quorum.
    12 36    4.  The council shall do all of the following:
    12 37    a.  Make quarterly cost projections for the medical
    12 38 assistance program.
    12 39    b.  Review quarterly reports on all initiatives
    12 40 under this chapter, including those provisions in the
    12 41 design, development, and implementation phases, and
    12 42 make additional recommendations for medical assistance
    12 43 program reform on an annual basis.
    12 44    c.  Review quarterly reports on the success of the
    12 45 Iowa Medicaid enterprise based upon the contractual
    12 46 performance measures for each Iowa Medicaid enterprise
    12 47 partner.
    12 48    d.  Assure that the expansion population is managed
    12 49 at all times within funding limitations.  In assuring
    12 50 such compliance, the council shall assume that
    13  1 supplemental funding will not be available for
    13  2 coverage of services provided to the expansion
    13  3 population.
    13  4    5.  The department of human services, the
    13  5 department of management, and the legislative services
    13  6 agency shall utilize a joint process to arrive at an
    13  7 annual consensus projection for medical assistance
    13  8 program expenditures for submission to the council.
    13  9 By December 15 of each fiscal year, the council shall
    13 10 agree to a projection of expenditures for the fiscal
    13 11 year beginning the following July 1, based upon the
    13 12 consensus projection submitted.
    13 13                      DIVISION VII
    13 14    ENHANCING THE FEDERAL=STATE FINANCIAL PARTNERSHIP
    13 15    Sec. 20.  NEW SECTION.  249J.20  PAYMENTS TO HEALTH
    13 16 CARE PROVIDERS BASED ON ACTUAL COSTS.
    13 17    Payments under the medical assistance program to
    13 18 public hospitals and public nursing facilities shall
    13 19 not exceed the actual medical assistance costs
    13 20 reported on the Medicare hospital and hospital health
    13 21 care complex cost report submitted to the centers for
    13 22 Medicare and Medicaid services of the United States
    13 23 department of health and human services.  The public
    13 24 hospitals and public nursing facilities shall retain
    13 25 one hundred percent of the medical assistance payments
    13 26 earned under state reimbursement rules.  State
    13 27 reimbursement rules may provide for reimbursement at
    13 28 less than actual cost.
    13 29    Sec. 21.  NEW SECTION.  249J.21  INDEPENDENT ANNUAL
    13 30 AUDIT.
    13 31    The department shall contract with a certified
    13 32 public accountant to provide an analysis, on an annual
    13 33 basis, to the governor and the general assembly
    13 34 regarding compliance of the Iowa medical assistance
    13 35 program with each of the following:
    13 36    1.  That the state has not instituted any new
    13 37 provider taxes as defined by the centers for Medicare
    13 38 and Medicaid services of the United States department
    13 39 of health and human services.
    13 40    2.  That public hospitals and public nursing
    13 41 facilities are not paid more than the actual costs of
    13 42 care for medical assistance program and
    13 43 disproportionate share hospital program recipients
    13 44 based upon Medicare program principles of accounting
    13 45 and cost reporting.
    13 46    3.  That the state is not recycling federal funds
    13 47 provided under Title XIX of the Social Security Act as
    13 48 defined by the centers for Medicare and Medicaid
    13 49 services of the United States department of health and
    13 50 human services.
    14  1    Sec. 22.  NEW SECTION.  249J.22  FUND FOR HEALTH
    14  2 CARE TRANSFORMATION.
    14  3    1.  A fund for health care transformation is
    14  4 created in the state treasury under the authority of
    14  5 the department.  Moneys received through the physician
    14  6 payment adjustment as described in 2003 Iowa Acts,
    14  7 chapter 112, section 11, subsection 1, and through the
    14  8 adjustment to hospital payments to provide an
    14  9 increased base rate to offset the high costs incurred
    14 10 for providing services to medical assistance patients
    14 11 as described in 2004 Iowa Acts, chapter 1175, section
    14 12 86, subsection 2, paragraph "b", shall be deposited in
    14 13 the fund.
    14 14    2.  Moneys in the fund shall be separate from the
    14 15 general fund of the state and shall not be considered
    14 16 part of the general fund of the state.  The moneys
    14 17 deposited in the fund are not subject to section 8.33
    14 18 and shall not be transferred, used, obligated,
    14 19 appropriated, or otherwise encumbered, except to
    14 20 provide for the purposes specified in this section.
    14 21 Notwithstanding section 12C.7, subsection 2, interest
    14 22 or earnings on moneys deposited in the fund shall be
    14 23 credited to the fund.
    14 24    3.  Moneys deposited in the fund for health care
    14 25 transformation shall be used only as provided in
    14 26 appropriations from the fund for the costs associated
    14 27 with certain services provided to the expansion
    14 28 population pursuant to section 249J.6, certain
    14 29 initiatives to be designed pursuant to section 249J.8,
    14 30 the case=mix adjusted reimbursement system for persons
    14 31 with mental retardation or developmental disabilities
    14 32 pursuant to section 249J.12, certain health promotion
    14 33 partnership activities pursuant to section 249J.14,
    14 34 the cost and quality performance evaluation pursuant
    14 35 to section 249J.15, auditing requirements pursuant to
    14 36 section 249J.21, the provision of additional indigent
    14 37 patient care and treatment, and administrative costs
    14 38 associated with this chapter.
    14 39                      DIVISION VIII
    14 40                       LIMITATIONS
    14 41    Sec. 23.  NEW SECTION.  249J.23  LIMITATIONS.
    14 42    1.  The provisions of this chapter shall not be
    14 43 construed, are not intended as, and shall not imply a
    14 44 grant of entitlement for services to individuals who
    14 45 are eligible for assistance under this chapter or for
    14 46 utilization of services that do not exist or are not
    14 47 otherwise available on the effective date of this Act.
    14 48 Any state obligation to provide services pursuant to
    14 49 this chapter is limited to the extent of the funds
    14 50 appropriated or distributed for the purposes of this
    15  1 chapter.
    15  2    2.  The provisions of this chapter shall not be
    15  3 construed and are not intended to affect the provision
    15  4 of services to recipients of medical assistance
    15  5 services existing on the effective date of this Act.
    15  6                       DIVISION IX
    15  7                   HOSPITAL TRUST FUND
    15  8    Sec. 24.  Section 249I.3, subsections 4 and 5, Code
    15  9 2005, are amended to read as follows:
    15 10    4.  "Hospital trust fund" means the fund and the
    15 11 accounts of the fund created in this chapter to secure
    15 12 funds based on hospital inpatient and outpatient
    15 13 prospective payment methodologies under the medical
    15 14 assistance program and to provide for the deposit of
    15 15 moneys from various sources for the support of certain
    15 16 public hospitals.
    15 17    5.  "Public hospital" means a hospital licensed
    15 18 pursuant to chapter 135B and governed pursuant to
    15 19 chapter 145A, 226, 347, 347A, or 392.
    15 20    Sec. 25.  Section 249I.4, Code 2005, is amended to
    15 21 read as follows:
    15 22    249I.4  HOSPITAL TRUST FUND == CREATED ==
    15 23 APPROPRIATIONS.
    15 24    1.  A hospital trust fund is created in the state
    15 25 treasury under the authority of the department of
    15 26 human services.  Moneys received through agreements
    15 27 for the trust fund and moneys received from sources,
    15 28 including grants, contributions, and participant
    15 29 payments, shall be deposited in the trust fund.
    15 30    2.  Moneys deposited in the trust fund and the
    15 31 accounts of the trust fund shall be used only as
    15 32 provided in appropriations or distributions from the
    15 33 trust fund to the department and the accounts of the
    15 34 trust fund for the purposes specified in the
    15 35 appropriation or distribution.
    15 36    3.  The trust fund and the accounts of the trust
    15 37 fund shall be separate from the general fund of the
    15 38 state and shall not be considered part of the general
    15 39 fund of the state.  The moneys in the trust fund and
    15 40 the accounts of the trust fund shall not be considered
    15 41 revenue of the state, but rather shall be funds of the
    15 42 trust fund and the accounts of the trust fund.  The
    15 43 moneys in the trust fund and the accounts of the trust
    15 44 fund are not subject to section 8.33 and shall not be
    15 45 transferred, used, obligated, appropriated, or
    15 46 otherwise encumbered, except to provide for the
    15 47 purposes of this chapter.  Notwithstanding section
    15 48 12C.7, subsection 2, interest or earnings on moneys
    15 49 deposited in the trust fund and the accounts of the
    15 50 trust fund shall be credited to the trust fund and the
    16  1 accounts of the trust fund.
    16  2    4.  The department shall adopt rules pursuant to
    16  3 chapter 17A to administer the trust fund and the
    16  4 accounts of the trust fund and to establish procedures
    16  5 for participation by public hospitals.
    16  6    5.  The treasurer of state shall provide a
    16  7 quarterly report of trust fund activities and balances
    16  8 to the director.
    16  9    6.  The hospital trust fund shall consist of the
    16 10 following accounts:
    16 11    a.  THE PUBLIC HOSPITAL ACCOUNT.  Moneys received
    16 12 through agreements for the trust fund based on
    16 13 hospital inpatient and outpatient prospective payment
    16 14 methodologies, and moneys received from other sources
    16 15 for deposit in the account, including grants,
    16 16 contributions, and participant payments, shall be
    16 17 deposited in the public hospital account.
    16 18    b.  THE INDIGENT PATIENT CARE PROGRAM ACCOUNT.
    16 19 Moneys appropriated from the general fund of the state
    16 20 to the account, moneys received as federal financial
    16 21 participation funds pursuant to chapter 249J and
    16 22 credited to the account, moneys received for
    16 23 disproportionate share hospitals and credited to the
    16 24 account, moneys received for indirect medical
    16 25 education and credited to the account, proceeds
    16 26 transferred from the county treasurer as specified in
    16 27 subsection 8, and moneys from any other source
    16 28 credited to the account shall be deposited in the
    16 29 account.  Moneys in the account shall be appropriated
    16 30 to the university of Iowa hospitals and clinics for
    16 31 the purposes provided in the federal law making the
    16 32 funds available or as specified in the state
    16 33 appropriation, and shall be distributed as determined
    16 34 by the department.
    16 35    c.  THE ACUTE CARE TEACHING HOSPITAL ACCOUNT.
    16 36 Moneys appropriated from the general fund of the state
    16 37 to the account, moneys received as federal financial
    16 38 participation funds pursuant to chapter 249J and
    16 39 credited to the account, moneys received for
    16 40 disproportionate share hospitals and credited to the
    16 41 account, moneys received for indirect medical
    16 42 education and credited to the account, proceeds
    16 43 transferred from the county treasurer as specified in
    16 44 subsection 8, and moneys received from any other
    16 45 source and credited to the account shall be deposited
    16 46 in the account.  Moneys in the account shall be
    16 47 appropriated to a publicly owned acute care teaching
    16 48 hospital located in a county with a population over
    16 49 three hundred fifty thousand, for the purposes
    16 50 provided in the federal law making the funds available
    17  1 or as specified in the state appropriation, and shall
    17  2 be distributed as determined by the department.
    17  3    d.  THE STATE HOSPITALS FOR PERSONS WITH MENTAL
    17  4 ILLNESS ACCOUNT.  Moneys appropriated from the general
    17  5 fund of the state to the account, moneys received as
    17  6 federal financial participation funds pursuant to
    17  7 chapter 249J and credited to the account, moneys
    17  8 received for disproportionate share hospitals and
    17  9 credited to the account, proceeds transferred from the
    17 10 county treasurer as specified in subsection 8, and
    17 11 moneys received from any other source and credited to
    17 12 the account shall be deposited in the account.
    17 13 Allocations or appropriations made to the state
    17 14 hospitals for persons with mental illness for the
    17 15 purposes of routine maintenance, infrastructure
    17 16 improvements, or education shall be retained in the
    17 17 respective hospital's allocation or appropriation and
    17 18 shall not be deposited in the account.  Moneys in the
    17 19 account shall be appropriated to the state hospitals
    17 20 for persons with mental illness designated pursuant to
    17 21 section 226.1 for the purposes provided in the federal
    17 22 law making the funds available or as specified in the
    17 23 state appropriation, and shall be distributed as
    17 24 determined by the department.
    17 25    7.  The department shall determine the distribution
    17 26 of moneys from each account in the fund based upon the
    17 27 source of receipt of the moneys.  Notwithstanding
    17 28 section 262.28, payments to be made to participating
    17 29 hospitals under subsection 6, paragraphs "b" through
    17 30 "d", may be made on a prospective basis in varying
    17 31 monthly installments.  After the close of the state
    17 32 fiscal year, the payments shall be adjusted to reflect
    17 33 actual expenditures, and the adjusted payments shall
    17 34 be made prior to September 1.  If payments to a
    17 35 participating hospital under subsection 6, paragraphs
    17 36 "b" through "d", are made in excess of actual
    17 37 expenditures, the participating hospital shall remit
    17 38 the excess amount to the department.  If payments to a
    17 39 participating hospital under subsection 6, paragraphs
    17 40 "b" through "d", are insufficient to reflect actual
    17 41 expenditures, the department shall pay the difference
    17 42 to the participating hospital.
    17 43    8.  Notwithstanding any provision to the contrary,
    17 44 from each semiannual collection of taxes levied under
    17 45 section 347.7 and collected after July 1, 2005, the
    17 46 county treasurer of the county with a population over
    17 47 three hundred fifty thousand in which a publicly owned
    17 48 acute care teaching hospital is located shall transfer
    17 49 the proceeds collected pursuant to section 347.7 for
    17 50 the general fund levy and the tort liability and
    18  1 insurance fund levy, which would otherwise be
    18  2 distributed to the county hospital, to the treasurer
    18  3 of state for deposit by the treasurer of state in the
    18  4 indigent patient care program account, the acute care
    18  5 teaching hospital account, and the state hospitals for
    18  6 persons with mental illness account under this
    18  7 section, in amounts determined by the department.  The
    18  8 board of trustees of the acute care teaching hospital
    18  9 identified in this subsection and the department shall
    18 10 execute an agreement under chapter 28E to specify the
    18 11 requirements relative to transfer of the proceeds and
    18 12 the distribution of moneys to the hospital from the
    18 13 acute care teaching hospital account.
    18 14    9.  The state board of regents on behalf of the
    18 15 university of Iowa hospitals and clinics and the
    18 16 department shall execute an agreement under chapter
    18 17 28E to specify the requirements relating to
    18 18 distribution of moneys to the hospital from the
    18 19 indigent patient care program account.
    18 20    10.  As a condition of the eligibility of the
    18 21 county with a population over three hundred fifty
    18 22 thousand for state payment as defined in section
    18 23 331.438 for the fiscal year beginning July 1, 2005,
    18 24 and for succeeding fiscal years, the county shall
    18 25 annually pay to an acute care teaching hospital
    18 26 located in the county a state maintenance of effort
    18 27 payment that is equal to the amount that was paid from
    18 28 the county's services fund under section 331.424A, for
    18 29 those services provided by the acute care teaching
    18 30 hospital for the fiscal year beginning July 1, 2003,
    18 31 on behalf of persons receiving services that were not
    18 32 reimbursed under the medical assistance program prior
    18 33 to July 1, 2005.
    18 34                       DIVISION X
    18 35                CORRESPONDING PROVISIONS
    18 36    Sec. 26.  Section 97B.52A, subsection 1, paragraph
    18 37 c, Code 2005, is amended to read as follows:
    18 38    c.  For a member whose first month of entitlement
    18 39 is July 2000 or later, the member does not return to
    18 40 any employment with a covered employer until the
    18 41 member has qualified for at least one calendar month
    18 42 of retirement benefits, and the member does not return
    18 43 to covered employment until the member has qualified
    18 44 for no fewer than four calendar months of retirement
    18 45 benefits.  For purposes of this paragraph, effective
    18 46 July 1, 2000, any employment with a covered employer
    18 47 does not include employment as an elective official or
    18 48 member of the general assembly if the member is not
    18 49 covered under this chapter for that employment.  For
    18 50 purposes of determining a bona fide retirement under
    19  1 this paragraph and for a member whose first month of
    19  2 entitlement is July 2004 or later, but before July
    19  3 2006, covered employment does not include employment
    19  4 as a licensed health care professional by a public
    19  5 hospital as defined in section 249I.3, with the
    19  6 exception of public hospitals governed pursuant to
    19  7 chapter 226.
    19  8    Sec. 27.  Section 218.78, subsection 1, Code 2005,
    19  9 is amended to read as follows:
    19 10    1.  All institutional receipts of the department of
    19 11 human services, including funds received from client
    19 12 participation at the state resource centers under
    19 13 section 222.78 and at the state mental health
    19 14 institutes under section 230.20, shall be deposited in
    19 15 the general fund except for reimbursements for
    19 16 services provided to another institution or state
    19 17 agency, for receipts deposited in the revolving farm
    19 18 fund under section 904.706, for deposits into the
    19 19 medical assistance fund under section 249A.11, for any
    19 20 deposits into the medical assistance fund of any
    19 21 medical assistance payments received through the
    19 22 expansion population program pursuant to chapter 249J,
    19 23 and rentals charged to employees or others for room,
    19 24 apartment, or house and meals, which shall be
    19 25 available to the institutions.
    19 26    Sec. 28.  Section 230.20, subsection 2, paragraph
    19 27 a, Code 2005, is amended to read as follows:
    19 28    a.  The superintendent shall certify to the
    19 29 department the billings to each county for services
    19 30 provided to patients chargeable to the county during
    19 31 the preceding calendar quarter.  The county billings
    19 32 shall be based on the average daily patient charge and
    19 33 other service charges computed pursuant to subsection
    19 34 1, and the number of inpatient days and other service
    19 35 units chargeable to the county.  However, a county
    19 36 billing shall be decreased by an amount equal to
    19 37 reimbursement by a third party payor or estimation of
    19 38 such reimbursement from a claim submitted by the
    19 39 superintendent to the third party payor for the
    19 40 preceding calendar quarter.  When the actual third
    19 41 party payor reimbursement is greater or less than
    19 42 estimated, the difference shall be reflected in the
    19 43 county billing in the calendar quarter the actual
    19 44 third party payor reimbursement is determined.  For
    19 45 the purposes of this paragraph, "third=party payor
    19 46 reimbursement" does not include reimbursement provided
    19 47 under chapter 249J.
    19 48    Sec. 29.  Section 230.20, subsections 5 and 6, Code
    19 49 2005, are amended to read as follows:
    19 50    5.  An individual statement shall be prepared for a
    20  1 patient on or before the fifteenth day of the month
    20  2 following the month in which the patient leaves the
    20  3 mental health institute, and a general statement shall
    20  4 be prepared at least quarterly for each county to
    20  5 which charges are made under this section.  Except as
    20  6 otherwise required by sections 125.33 and 125.34 the
    20  7 general statement shall list the name of each patient
    20  8 chargeable to that county who was served by the mental
    20  9 health institute during the preceding month or
    20 10 calendar quarter, the amount due on account of each
    20 11 patient, and the specific dates for which any third
    20 12 party payor reimbursement received by the state is
    20 13 applied to the statement and billing, and the county
    20 14 shall be billed for eighty percent of the stated
    20 15 charge for each patient specified in this subsection.
    20 16 For the purposes of this subsection, "third=party
    20 17 payor reimbursement" does not include reimbursement
    20 18 provided under chapter 249J.  The statement prepared
    20 19 for each county shall be certified by the department
    20 20 and a duplicate statement shall be mailed to the
    20 21 auditor of that county.
    20 22    6.  All or any reasonable portion of the charges
    20 23 incurred for services provided to a patient, to the
    20 24 most recent date for which the charges have been
    20 25 computed, may be paid at any time by the patient or by
    20 26 any other person on the patient's behalf.  Any payment
    20 27 so made by the patient or other person, and any
    20 28 federal financial assistance received pursuant to
    20 29 Title XVIII or XIX of the federal Social Security Act
    20 30 for services rendered to a patient, shall be credited
    20 31 against the patient's account and, if the charges so
    20 32 paid as described in this subsection have previously
    20 33 been billed to a county, reflected in the mental
    20 34 health institute's next general statement to that
    20 35 county.  However, any payment made under chapter 249J
    20 36 shall not be reflected in the mental health
    20 37 institute's next general statement to that county.
    20 38    Sec. 30.  Section 249A.4, subsection 8, unnumbered
    20 39 paragraph 1, Code 2005, is amended to read as follows:
    20 40    Shall advise and consult at least semiannually with
    20 41 a council composed of the presidents of the following
    20 42 organizations, or a president's representative who is
    20 43 a member of the organization represented by the
    20 44 president:  the Iowa medical society, the Iowa
    20 45 osteopathic medical association, the Iowa academy of
    20 46 family physicians, the Iowa chapter of the American
    20 47 academy of pediatrics, the Iowa physical therapy
    20 48 association, the Iowa dental association, the Iowa
    20 49 nurses association, the Iowa pharmacy association, the
    20 50 Iowa podiatric medical society, the Iowa optometric
    21  1 association, the Iowa association of community
    21  2 providers, the Iowa psychological association, the
    21  3 Iowa psychiatric society, the Iowa chapter of the
    21  4 national association of social workers, the Iowa
    21  5 hospital association, the Iowa association of rural
    21  6 health clinics, the opticians' association of Iowa,
    21  7 inc., the Iowa association of hearing health
    21  8 professionals, the Iowa speech and hearing
    21  9 association, the Iowa health care association, the
    21 10 Iowa association for home care, the Iowa council of
    21 11 health care centers, the Iowa physician assistant
    21 12 society, the Iowa association of nurse practitioners,
    21 13 the Iowa occupational therapy association, the Iowa
    21 14 association of homes and services for the aging, the
    21 15 ARC of Iowa which was formerly known as the
    21 16 association for retarded citizens of Iowa, the
    21 17 alliance for the mentally ill of Iowa, Iowa state
    21 18 association of counties, and the governor's
    21 19 developmental disabilities council, together with one
    21 20 person designated by the Iowa chiropractic society;
    21 21 one state representative from each of the two major
    21 22 political parties appointed by the speaker of the
    21 23 house, one state senator from each of the two major
    21 24 political parties appointed by the president of the
    21 25 senate, after consultation with the majority leader
    21 26 and the minority leader of the senate, each for a term
    21 27 of two years; four public representatives equal in
    21 28 number to the number of representatives of
    21 29 professional groups and associations specifically
    21 30 represented on the council under this subsection,
    21 31 appointed by the governor for staggered terms of two
    21 32 years each, none of whom shall be members of, or
    21 33 practitioners of, or have a pecuniary interest in any
    21 34 of the professions or businesses represented by any of
    21 35 the several professional groups and associations
    21 36 specifically represented on the council under this
    21 37 subsection, and at least one all of whom shall be a
    21 38 recipient current or former recipients of medical
    21 39 assistance; the director of public health, or a
    21 40 representative designated by the director; the
    21 41 director of the department of elder affairs, or a
    21 42 representative designated by the director; the dean of
    21 43 Des Moines university == osteopathic medical center,
    21 44 or a representative designated by the dean; and the
    21 45 dean of the university of Iowa college of medicine, or
    21 46 a representative designated by the dean.
    21 47    Sec. 31.  Section 249A.11, Code 2005, is amended to
    21 48 read as follows:
    21 49    249A.11  PAYMENT FOR PATIENT CARE SEGREGATED.
    21 50    A state resource center or mental health institute,
    22  1 upon receipt of any payment made under this chapter
    22  2 for the care of any patient, shall segregate an amount
    22  3 equal to that portion of the payment which is required
    22  4 by law to be made from nonfederal funds except for any
    22  5 nonfederal funds received through the expansion
    22  6 population program pursuant to chapter 249J.  The
    22  7 money segregated shall be deposited in the medical
    22  8 assistance fund of the department of human services.
    22  9    Sec. 32.  Section 249H.4, Code 2005, is amended by
    22 10 adding the following new subsection:
    22 11    NEW SUBSECTION.  7.  The director shall amend the
    22 12 medical assistance state plan to eliminate the
    22 13 mechanism to secure funds based on skilled nursing
    22 14 facility prospective payment methodologies under the
    22 15 medical assistance program and to terminate agreements
    22 16 entered into with public nursing facilities under this
    22 17 chapter, effective June 30, 2005.
    22 18    Sec. 33.  Section 249I.5, Code 2005, is amended to
    22 19 read as follows:
    22 20    249I.5  STATE PLAN AMENDMENT.
    22 21    The director shall amend the state medical
    22 22 assistance state plan as necessary to implement this
    22 23 chapter.  The director shall amend the medical
    22 24 assistance state plan to eliminate the mechanism to
    22 25 secure funds based on hospital inpatient and
    22 26 outpatient prospective payment methodologies under the
    22 27 medical assistance program and to terminate agreements
    22 28 entered into under this chapter, effective June 30,
    22 29 2005.
    22 30    Sec. 34.  2004 Iowa Acts, chapter 1175, section 86,
    22 31 subsection 2, paragraph b, unnumbered paragraph 2, and
    22 32 subparagraphs (1), (2), and (3), are amended to read
    22 33 as follows:
    22 34    Of the amount appropriated in this lettered
    22 35 paragraph, $25,950,166 shall be considered encumbered
    22 36 and shall not be expended for any purpose until
    22 37 January 1, 2005.
    22 38    (1)  However, if If the department of human
    22 39 services adjusts hospital payments to provide an
    22 40 increased base rate to offset the high cost incurred
    22 41 for providing services to medical assistance patients
    22 42 on or prior to January July 1, 2005, a portion of the
    22 43 amount specified in this unnumbered paragraph equal to
    22 44 the increased Medicaid payment shall revert to the
    22 45 general fund of the state.  Notwithstanding section
    22 46 8.54, subsection 7, the amount required to revert
    22 47 under this subparagraph shall not be considered to be
    22 48 appropriated for purposes of the state general fund
    22 49 expenditure limitation for the fiscal year beginning
    22 50 July 1, 2004.
    23  1    (2)  If the adjustment described in subparagraph
    23  2 (1) to increase the base rate is not made prior to
    23  3 January 1, 2005, the amount specified in this
    23  4 unnumbered paragraph shall no longer be considered
    23  5 encumbered, may be expended, and shall be available
    23  6 for the purposes originally specified be transferred
    23  7 by the university of Iowa hospitals and clinics to the
    23  8 medical assistance fund of the department of human
    23  9 services.  Of the amount transferred, an amount equal
    23 10 to the federal share of the payments shall be
    23 11 transferred to the fund for health care transformation
    23 12 created in section 249J.22.
    23 13    (3)  (2)  Any incremental increase in the base rate
    23 14 made pursuant to subparagraph (1) shall not be used in
    23 15 determining the university of Iowa hospital and
    23 16 clinics disproportionate share rate or when
    23 17 determining the statewide average base rate for
    23 18 purposes of calculating indirect medical education
    23 19 rates.
    23 20    Sec. 35.  2003 Iowa Acts, chapter 112, section 11,
    23 21 subsection 1, is amended to read as follows:
    23 22    1.  For the fiscal year years beginning July 1,
    23 23 2003, and ending June 30, 2004, and beginning July 1,
    23 24 2004, and for each fiscal year thereafter ending June
    23 25 30, 2005, the department of human services shall
    23 26 institute a supplemental payment adjustment applicable
    23 27 to physician services provided to medical assistance
    23 28 recipients at publicly owned acute care teaching
    23 29 hospitals.  The adjustment shall generate supplemental
    23 30 payments to physicians which are equal to the
    23 31 difference between the physician's charge and the
    23 32 physician's fee schedule under the medical assistance
    23 33 program.  To the extent of the supplemental payments,
    23 34 a qualifying hospital shall, after receipt of the
    23 35 payments, transfer to the department of human services
    23 36 an amount equal to the actual supplemental payments
    23 37 that were made in that month.  The department of human
    23 38 services shall deposit these payments in the
    23 39 department's medical assistance account.  The
    23 40 department of human services shall amend the medical
    23 41 assistance state plan as necessary to implement this
    23 42 section.  The department may adopt emergency rules to
    23 43 implement this section.  The department of human
    23 44 services shall amend the medical assistance state plan
    23 45 to eliminate this provision effective June 30, 2005.
    23 46    Sec. 36.  CORRESPONDING DIRECTIVES TO DEPARTMENT.
    23 47 The department shall do all of the following:
    23 48    1.  Withdraw the request for the waiver and the
    23 49 medical assistance state plan amendment submitted to
    23 50 the centers for Medicare and Medicaid services of the
    24  1 United States department of health and human services
    24  2 regarding the nursing facility quality assurance
    24  3 assessment as directed pursuant to 2003 Iowa Acts,
    24  4 chapter 112, section 4, 2003 Iowa Acts, chapter 179,
    24  5 section 162, and 2004 Iowa Acts, chapter 1085,
    24  6 sections 8, 10, and 11.
    24  7    2.  Amend the medical assistance state plan to
    24  8 eliminate the mechanism to secure funds based on
    24  9 hospital inpatient and outpatient prospective payment
    24 10 methodologies under the medical assistance program,
    24 11 effective June 30, 2005.
    24 12    3.  Amend the medical assistance state plan to
    24 13 eliminate the mechanisms to receive supplemental
    24 14 disproportionate share hospital and indirect medical
    24 15 education funds as originally submitted, effective
    24 16 June 30, 2005.
    24 17    4.  Amend the medical assistance state plan
    24 18 amendment to adjust hospital payments to provide an
    24 19 increased base rate to offset the high cost incurred
    24 20 for providing services to medical assistance patients
    24 21 at the university of Iowa hospitals and clinics as
    24 22 originally submitted based upon the specifications of
    24 23 2004 Iowa Acts, chapter 1175, section 86, subsection
    24 24 2, paragraph "b", unnumbered paragraph 2, and
    24 25 subparagraphs (1),(2), and (3), to be approved for the
    24 26 fiscal year beginning July 1 2004, and ending June 30,
    24 27 2005, only, and to be eliminated June 30, 2005.
    24 28    5.  Amend the medical assistance state plan
    24 29 amendment to establish a physician payment adjustment
    24 30 from the university of Iowa hospitals and clinics, as
    24 31 originally submitted as described in 2003 Iowa Acts,
    24 32 chapter 112, section 11, subsection 1, to be approved
    24 33 for the state fiscal years beginning July 1, 2003, and
    24 34 ending June 30, 2004, and beginning July 1, 2004, and
    24 35 ending June 30, 2005, and to be eliminated effective
    24 36 June 30, 2005.
    24 37    6.  Amend the medical assistance state plan to
    24 38 eliminate the mechanism to secure funds based on
    24 39 skilled nursing facility prospective payment
    24 40 methodologies under the medical assistance program,
    24 41 effective June 30, 2005.
    24 42    7.  Request a waiver from the centers for Medicare
    24 43 and Medicaid services of the United States department
    24 44 of health and human services of the provisions
    24 45 relating to the early and periodic screening,
    24 46 diagnostic, and treatment program requirements as
    24 47 described in section 1905(a)(5) of the federal Social
    24 48 Security Act relative to the expansion population.
    24 49    Sec. 37.  Sections 249A.20B and 249A.34, Code 2005,
    24 50 are repealed.
    25  1    Sec. 38.  2003 Iowa Acts, chapter 112, section 4,
    25  2 2003 Iowa Acts, chapter 179, section 162, and 2004
    25  3 Iowa Acts, chapter 1085, section 8, and section 10,
    25  4 subsection 5, are repealed.
    25  5                       DIVISION XI
    25  6                   PHARMACY COPAYMENTS
    25  7    Sec. 39.  COPAYMENTS FOR PRESCRIPTION DRUGS UNDER
    25  8 THE MEDICAL ASSISTANCE PROGRAM.  The department of
    25  9 human services shall require recipients of medical
    25 10 assistance to pay the following copayments on each
    25 11 prescription filled for a covered prescription drug,
    25 12 including each refill of such prescription, as
    25 13 follows:
    25 14    1.  A copayment of $1 for each covered generic
    25 15 prescription drug not included on the prescription
    25 16 drug list.
    25 17    2.  A copayment of $1 for each covered brand=name
    25 18 or generic prescription drug included on the
    25 19 prescription drug list.
    25 20    3.  A copayment of $1 for each covered brand=name
    25 21 prescription drug not included on the prescription
    25 22 drug list for which the cost to the state is up to and
    25 23 including $25.
    25 24    4.  A copayment of $2 for each covered brand=name
    25 25 prescription drug not included on the prescription
    25 26 drug list for which the cost to the state is more than
    25 27 $25 and up to and including $50.
    25 28    5.  A copayment of $3 for each covered brand=name
    25 29 prescription drug not included on the preferred drug
    25 30 list for which the cost to the state is more than $50.
    25 31                      DIVISION XII
    25 32                  STATE PAPERS PROGRAM
    25 33    Sec. 40.  Section 135B.31, Code 2005, is amended to
    25 34 read as follows:
    25 35    135B.31  EXCEPTIONS.
    25 36    Nothing in this This division is not intended or
    25 37 should and shall not affect in any way that the
    25 38 obligation of public hospitals under chapter 347 or
    25 39 municipal hospitals, as well as the state hospital at
    25 40 Iowa City, to provide medical or obstetrical and
    25 41 newborn care for indigent persons under chapter 255 or
    25 42 255A, wherein medical care or treatment is provided by
    25 43 hospitals of that category to patients of certain
    25 44 entitlement, nor to the operation by the state of
    25 45 mental or other hospitals authorized by law.  Nothing
    25 46 herein This division shall not in any way affect or
    25 47 limit the practice of dentistry or the practice of
    25 48 oral surgery by a dentist.
    25 49    Sec. 41.  Section 144.13A, subsection 3, Code 2005,
    25 50 is amended to read as follows:
    26  1    3.  If the person responsible for the filing of the
    26  2 certificate of birth under section 144.13 is not the
    26  3 parent, the person is entitled to collect the fee from
    26  4 the parent.  The fee shall be remitted to the state
    26  5 registrar.  If the expenses of the birth are
    26  6 reimbursed under the medical assistance program
    26  7 established by chapter 249A, or paid for under the
    26  8 statewide indigent patient care program established by
    26  9 chapter 255, or paid for under the obstetrical and
    26 10 newborn indigent patient care program established by
    26 11 chapter 255A, or if the parent is indigent and unable
    26 12 to pay the expenses of the birth and no other means of
    26 13 payment is available to the parent, the registration
    26 14 fee and certified copy fee are waived.  If the person
    26 15 responsible for the filing of the certificate is not
    26 16 the parent, the person is discharged from the duty to
    26 17 collect and remit the fee under this section if the
    26 18 person has made a good faith effort to collect the fee
    26 19 from the parent.
    26 20    Sec. 42.  Section 249A.4, subsection 12, Code 2005,
    26 21 is amended by striking the subsection.
    26 22        UNIVERSITY OF IOWA HOSPITALS AND CLINICS
    26 23    Sec. 43.  NEW SECTION.  263.18  TREATMENT OF
    26 24 PATIENTS == USE OF EARNINGS FOR NEW FACILITIES.
    26 25    1.  The university of Iowa hospitals and clinics
    26 26 authorities may at their discretion receive patients
    26 27 into the hospital for medical, obstetrical, or
    26 28 surgical treatment or hospital care.  The university
    26 29 of Iowa hospitals and clinics ambulances and ambulance
    26 30 personnel may be used for the transportation of such
    26 31 patients at a reasonable charge if specialized
    26 32 equipment is required.
    26 33    2.  The university of Iowa hospitals and clinics
    26 34 authorities shall collect from the person or persons
    26 35 liable for support of such patients reasonable charges
    26 36 for hospital care and service and deposit payment of
    26 37 the charges with the treasurer of the university for
    26 38 the use and benefit of the university of Iowa
    26 39 hospitals and clinics.
    26 40    3.  Earnings of the university of Iowa hospitals
    26 41 and clinics shall be administered so as to increase,
    26 42 to the greatest extent possible, the services
    26 43 available for patients, including acquisition,
    26 44 construction, reconstruction, completion, equipment,
    26 45 improvement, repair, and remodeling of medical
    26 46 buildings and facilities, additions to medical
    26 47 buildings and facilities, and the payment of principal
    26 48 and interest on bonds issued to finance the cost of
    26 49 medical buildings and facilities as authorized by the
    26 50 provisions of chapter 263A.
    27  1    4.  The physicians and surgeons on the staff of the
    27  2 university of Iowa hospitals and clinics who care for
    27  3 patients provided for in this section may charge for
    27  4 the medical services provided under such rules,
    27  5 regulations, and plans approved by the state board of
    27  6 regents.
    27  7    Sec. 44.  NEW SECTION.  263.19  PURCHASES.
    27  8    Any purchase in excess of ten thousand dollars, of
    27  9 materials, appliances, instruments, or supplies by the
    27 10 university of Iowa hospitals and clinics, when the
    27 11 price of the materials, appliances, instruments, or
    27 12 supplies to be purchased is subject to competition,
    27 13 shall be made pursuant to open competitive quotations,
    27 14 and all contracts for such purchases shall be subject
    27 15 to chapter 72.  However, purchases may be made through
    27 16 a hospital group purchasing organization provided that
    27 17 the university of Iowa hospitals and clinics is a
    27 18 member of the organization and the group purchasing
    27 19 organization selects the items to be offered to
    27 20 members through a competitive bidding process.
    27 21    Sec. 45.  NEW SECTION.  263.20  COLLECTING AND
    27 22 SETTLING CLAIMS FOR CARE.
    27 23    Whenever a patient or person legally liable for the
    27 24 patient's care at the university of Iowa hospitals and
    27 25 clinics has insurance, an estate, a right of action
    27 26 against others, or other assets, the university of
    27 27 Iowa hospitals and clinics, through the facilities of
    27 28 the office of the attorney general, may file claims,
    27 29 institute or defend suit in court, and use other legal
    27 30 means available to collect accounts incurred for the
    27 31 care of the patient, and may compromise, settle, or
    27 32 release such actions under the rules and procedures
    27 33 prescribed by the president of the university and the
    27 34 office of the attorney general.  If a county has paid
    27 35 any part of such patient's care, a pro rata amount
    27 36 collected, after deduction for cost of collection,
    27 37 shall be remitted to the county and the balance shall
    27 38 be credited to the hospital fund.
    27 39    Sec. 46.  NEW SECTION.  263.21  TRANSFER OF
    27 40 PATIENTS FROM STATE INSTITUTIONS.
    27 41    The director of the department of human services,
    27 42 in respect to institutions under the director's
    27 43 control, the administrator of any of the divisions of
    27 44 the department, in respect to the institutions under
    27 45 the administrator's control, the director of the
    27 46 department of corrections, in respect to the
    27 47 institutions under the department's control, and the
    27 48 state board of regents, in respect to the Iowa braille
    27 49 and sight saving school and the Iowa school for the
    27 50 deaf, may send any inmate, student, or patient of an
    28  1 institution, or any person committed or applying for
    28  2 admission to an institution, to the university of Iowa
    28  3 hospitals and clinics for treatment and care.  The
    28  4 department of human services, the department of
    28  5 corrections, and the state board of regents shall
    28  6 respectively pay the traveling expenses of such
    28  7 patient, and when necessary the traveling expenses of
    28  8 an attendant for the patient, out of funds
    28  9 appropriated for the use of the institution from which
    28 10 the patient is sent.
    28 11    Sec. 47.  NEW SECTION.  263.22  MEDICAL CARE FOR
    28 12 PAROLEES AND PERSONS ON WORK RELEASE.
    28 13    The director of the department of corrections may
    28 14 send former inmates of the institutions provided for
    28 15 in section 904.102, while on parole or work release,
    28 16 to the university of Iowa hospitals and clinics for
    28 17 treatment and care.  The director may pay the
    28 18 traveling expenses of any such patient, and when
    28 19 necessary the traveling expenses of an attendant of
    28 20 the patient, out of funds appropriated for the use of
    28 21 the department of corrections.
    28 22    Sec. 48.  Section 271.6, Code 2005, is amended to
    28 23 read as follows:
    28 24    271.6  INTEGRATED TREATMENT OF UNIVERSITY HOSPITAL
    28 25 PATIENTS.
    28 26    The authorities of the Oakdale campus may authorize
    28 27 patients for admission to the hospital on the Oakdale
    28 28 campus who are referred from the university hospitals
    28 29 and who shall retain the same status, classification,
    28 30 and authorization for care which they had at the
    28 31 university hospitals.  Patients referred from the
    28 32 university hospitals to the Oakdale campus shall be
    28 33 deemed to be patients of the university hospitals.
    28 34 Chapters 255 and 255A and The operating policies of
    28 35 the university hospitals shall apply to the patients
    28 36 and to the payment for their care the same as the
    28 37 provisions apply to patients who are treated on the
    28 38 premises of the university hospitals.
    28 39    Sec. 49.  Section 331.381, subsection 9, Code 2005,
    28 40 is amended by striking the subsection.
    28 41    Sec. 50.  Section 331.502, subsection 17, Code
    28 42 2005, is amended by striking the subsection.
    28 43    Sec. 51.  Section 331.552, subsection 13, Code
    28 44 2005, is amended to read as follows:
    28 45    13.  Make transfer payments to the state for school
    28 46 expenses for blind and deaf children, and support of
    28 47 persons with mental illness, and hospital care for the
    28 48 indigent as provided in sections 230.21, 255.26,
    28 49 269.2, and 270.7.
    28 50    Sec. 52.  Section 331.653, subsection 26, Code
    29  1 2005, is amended by striking the subsection.
    29  2    Sec. 53.  Section 331.756, subsection 53, Code
    29  3 2005, is amended by striking the subsection.
    29  4    Sec. 54.  Section 602.8102, subsection 48, Code
    29  5 2005, is amended by striking the subsection.
    29  6    Sec. 55.  Chapters 255 and 255A, Code 2005, are
    29  7 repealed.
    29  8    Sec. 56.  MEDICAL ASSISTANCE ELIGIBILITY FOR
    29  9 INMATES OF PUBLIC INSTITUTIONS.  The department shall
    29 10 maximize the federal financial participation exception
    29 11 under the medical assistance program for inmates of
    29 12 public institutions who are patients in a medical
    29 13 institution as provided in 42 U.S.C. } 1396d(a)(27)(A)
    29 14 and are otherwise eligible for medical assistance.
    29 15                      DIVISION XIII
    29 16                STATE MEDICAL INSTITUTION
    29 17    Sec. 57.  NEW SECTION.  218A.1  STATE MEDICAL
    29 18 INSTITUTION.
    29 19    1.  All of the following shall be collectively
    29 20 designated as a single state medical institution:
    29 21    a.  The mental health institute, Mount Pleasant,
    29 22 Iowa.
    29 23    b.  The mental health institute, Independence,
    29 24 Iowa.
    29 25    c.  The mental health institute, Clarinda, Iowa.
    29 26    d.  The mental health institute, Cherokee, Iowa.
    29 27    e.  The Glenwood state resource center.
    29 28    f.  The Woodward state resource center.
    29 29    2.  Necessary portions of the institutes and
    29 30 resource centers shall remain licensed as separate
    29 31 hospitals and as separate intermediate care facilities
    29 32 for persons with mental retardation, and the locations
    29 33 and operations of the institutes and resource centers
    29 34 shall not be subject to consolidation to comply with
    29 35 this chapter.
    29 36    3.  The state medical institution shall qualify for
    29 37 payments described in subsection 4 for the fiscal
    29 38 period beginning July 1, 2005, and ending June 30,
    29 39 2010, if the state medical institution and the various
    29 40 parts of the institution comply with the requirements
    29 41 for payment specified in subsection 4, and all of the
    29 42 following conditions are met:
    29 43    a.  The total number of beds in the state medical
    29 44 institution licensed as hospital beds is less than
    29 45 fifty percent of the total number of all state medical
    29 46 institution beds.  In determining compliance with this
    29 47 requirement, however, any reduction in the total
    29 48 number of beds that occurs as the result of reduction
    29 49 in census due to an increase in utilization of home
    29 50 and community=based services shall not be considered.
    30  1    b.  An individual is appointed by the director of
    30  2 human services to serve as the director of the state
    30  3 medical institution and an individual is appointed by
    30  4 the director of human services to serve as medical
    30  5 director of the state medical institution.  The
    30  6 individual appointed to serve as the director of the
    30  7 state medical institution may also be an employee of
    30  8 the department of human services or of a component
    30  9 part of the state medical institution.  The individual
    30 10 appointed to serve as medical director of the state
    30 11 medical institution may also serve as the medical
    30 12 director of one of the component parts of the state
    30 13 medical institution.
    30 14    c.  A workgroup comprised of the director of human
    30 15 services or the director's designee, the director of
    30 16 the state medical institution, the directors of all
    30 17 licensed intermediate care facilities for persons with
    30 18 mental retardation in the state, and representatives
    30 19 from the Iowa state association of counties, the Iowa
    30 20 association of community providers, and other
    30 21 interested parties develops and presents a plan, for
    30 22 submission to the centers for Medicare and Medicaid
    30 23 services of the United States department of health and
    30 24 human services, to the general assembly no later than
    30 25 July 1, 2007, to reduce the number of individuals in
    30 26 intermediate care facilities for persons with mental
    30 27 retardation in the state and concurrently to increase
    30 28 the number of individuals with mental retardation and
    30 29 developmental disabilities in the state who have
    30 30 access to home and community=based services.  The plan
    30 31 shall include a proposal to redesign the home and
    30 32 community=based services waivers for persons with
    30 33 mental retardation and persons with brain injury under
    30 34 the medical assistance program.  The department shall
    30 35 not implement the plan without express authorization
    30 36 by the general assembly.
    30 37    4.  The department of human services shall submit a
    30 38 waiver to the centers for Medicare and Medicaid
    30 39 services of the United States department of health and
    30 40 human services to provide for all of the following:
    30 41    a.  Coverage under the medical assistance program,
    30 42 with appropriate federal matching funding, for
    30 43 inpatient and outpatient hospital services provided to
    30 44 eligible individuals by any part of the state medical
    30 45 institution that maintains a state license as a
    30 46 hospital.
    30 47    b.  Disproportionate share hospital payments for
    30 48 services provided by any part of the state medical
    30 49 institution that maintains a state license as a
    30 50 hospital.
    31  1    c.  Imposition of an assessment on intermediate
    31  2 care facilities for persons with mental retardation on
    31  3 any part of the state medical institution that
    31  4 provides intermediate care facility for persons with
    31  5 mental retardation services.
    31  6                      DIVISION XIV
    31  7           APPROPRIATIONS AND EFFECTIVE DATES
    31  8    Sec. 58.  APPROPRIATIONS FROM HOSPITAL TRUST FUND
    31  9 ACCOUNTS.
    31 10    1.  There is appropriated from the indigent patient
    31 11 care program account created in section 249I.4 to the
    31 12 university of Iowa hospitals and clinics for the
    31 13 fiscal year beginning July 1, 2005, and ending June
    31 14 30, 2006, the following amount, or so much thereof as
    31 15 is necessary, to be used for the purposes designated:
    31 16    For salaries, support, maintenance, equipment, and
    31 17 miscellaneous purposes, for the provision of medical
    31 18 and surgical treatment of indigent patients, for
    31 19 provision of services to recipients under the medical
    31 20 assistance program expansion population pursuant to
    31 21 chapter 249J, as enacted in this Act, and for medical
    31 22 education:
    31 23 .................................................. $ 27,284,584
    31 24    2.  There is appropriated from the acute care
    31 25 teaching hospital account created in section 249I.4 to
    31 26 a publicly owned acute care teaching hospital located
    31 27 in a county with a population over three hundred fifty
    31 28 thousand for the fiscal year beginning July 1, 2005,
    31 29 and ending June 30, 2006, the following amount, or so
    31 30 much thereof as is necessary, to be used for the
    31 31 purposes designated:
    31 32    For the provision of medical and surgical treatment
    31 33 of indigent patients and for provision of services to
    31 34 recipients under the medical assistance program
    31 35 expansion population pursuant to chapter 249J, as
    31 36 enacted in this Act:
    31 37 .................................................. $ 40,000,000
    31 38    3.  There is appropriated from the state hospitals
    31 39 for persons with mental illness account created in
    31 40 section 249I.4 to the state hospitals for persons with
    31 41 mental illness designated pursuant to section 226.1
    31 42 for the fiscal year beginning July 1, 2005, and ending
    31 43 June 30, 2006, the following amounts, or so much
    31 44 thereof as is necessary, to be used for the purposes
    31 45 designated:
    31 46    a.  For services at the state mental health
    31 47 institute at Cherokee, including services to
    31 48 recipients under the medical assistance program
    31 49 expansion population pursuant to chapter 249J, as
    31 50 enacted in this Act:
    32  1 .................................................. $ 13,074,889
    32  2    b.  For services at the state mental health
    32  3 institute at Clarinda to recipients under the medical
    32  4 assistance program expansion population pursuant to
    32  5 chapter 249J, as enacted in this Act:
    32  6 .................................................. $  7,439,591
    32  7    c.  For services at the state mental health
    32  8 institute at Independence to recipients under the
    32  9 medical assistance program expansion population
    32 10 pursuant to chapter 249J, as enacted in this Act:
    32 11 .................................................. $ 17,329,091
    32 12    d.  For services at the state mental health
    32 13 institute at Mount Pleasant to recipients under the
    32 14 medical assistance program expansion population
    32 15 designation pursuant to chapter 249J, as enacted in
    32 16 this Act:
    32 17 .................................................. $  6,131,181
    32 18    Sec. 59.  EFFECTIVE DATES == CONTINGENT REDUCTION
    32 19 == RULES == RETROACTIVE APPLICABILITY.
    32 20    1.  The provisions of this Act requiring the
    32 21 department of human services to request waivers from
    32 22 the centers for Medicare and Medicaid services of the
    32 23 United States department of health and human services
    32 24 and to amend the medical assistance state plan, being
    32 25 deemed of immediate importance, take effect upon
    32 26 enactment.
    32 27    2.  The remaining provisions of this Act, with the
    32 28 exception of the provisions described in subsection 1,
    32 29 shall not take effect unless the department of human
    32 30 services receives approval of all waivers and medical
    32 31 assistance state plan amendments required under this
    32 32 Act.  If all approvals are received, the remaining
    32 33 provisions of this Act shall take effect July 1, 2005,
    32 34 or on the date specified in the waiver or medical
    32 35 assistance state plan amendment for a particular
    32 36 provision.  The department of human services shall
    32 37 notify the Code editor of the date of receipt of the
    32 38 approvals.
    32 39    3.  If this Act is enacted and if the Eighty=first
    32 40 General Assembly enacts legislation appropriating
    32 41 moneys from the general fund of the state to the
    32 42 department of human services for the fiscal year
    32 43 beginning July 1, 2005, and ending June 30, 2006, for
    32 44 the state hospitals for persons with mental illness
    32 45 designated pursuant to section 226.1, for salaries,
    32 46 support, maintenance, and miscellaneous purposes and
    32 47 for full=time equivalent positions, and if this Act is
    32 48 enacted, the appropriations shall be reduced in the
    32 49 following amounts and the amounts shall be transferred
    32 50 to the medical assistance fund of the department of
    33  1 human services to diminish the effect of
    33  2 intergovernmental transfer reductions:
    33  3    a.  For the state mental health institute at
    33  4 Cherokee:
    33  5 .................................................. $ 13,074,889
    33  6    b.  For the state mental health institute at
    33  7 Clarinda:
    33  8 .................................................. $  7,439,591
    33  9    c.  For the state mental health institute at
    33 10 Independence:
    33 11 .................................................. $ 17,329,091
    33 12    d.  For the state mental health institute at Mount
    33 13 Pleasant:
    33 14 .................................................. $  6,131,181
    33 15    4.  If this Act is enacted and if the Eighty=first
    33 16 General Assembly enacts legislation appropriating
    33 17 moneys from the general fund of the state to the state
    33 18 university of Iowa for the fiscal year beginning July
    33 19 1, 2005, and ending June 30, 2006, for the university
    33 20 hospitals for salaries, support, maintenance,
    33 21 equipment, and miscellaneous purposes and for medical
    33 22 and surgical treatment of indigent patients as
    33 23 provided in chapter 255, for medical education, and
    33 24 for full=time equivalent positions, and if this Act is
    33 25 enacted, the appropriation is reduced by $27,284,584
    33 26 and the amount shall be transferred to the medical
    33 27 assistance fund of the department of human services to
    33 28 diminish the effect of intergovernmental transfer
    33 29 reductions.
    33 30    5.  If this Act is enacted, and if the Eighty=first
    33 31 General Assembly enacts 2005 Iowa Acts, House File
    33 32 816, and 2005 Iowa Acts, House File 816 includes a
    33 33 provision relating to medical assistance supplemental
    33 34 amounts for disproportionate share hospital and
    33 35 indirect medical education, the provision in House
    33 36 File 816 shall not take effect.
    33 37    6.  The department of human services may adopt
    33 38 emergency rules pursuant to chapter 17A to implement
    33 39 and administer the provisions of this Act.
    33 40    7.  The department of human services may procure
    33 41 sole source contracts to implement any provision of
    33 42 this Act.
    33 43    8.  The provisions of this Act amending 2003 Iowa
    33 44 Acts, chapter 112, section 11, and repealing section
    33 45 249A.20B, are retroactively applicable to May 2, 2003.
    33 46    9.  The section of this Act amending 2004 Iowa
    33 47 Acts, chapter 1175, section 86, is retroactively
    33 48 applicable to May 17, 2004.>
    33 49
    33 50
    34  1                               
    34  2 COMMITTEE ON HUMAN RESOURCES
    34  3 UPMEYER of Hancock, Chairperson
    34  4 HF 841.305 81
    34  5 pf/cf/2038

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