H.F. 378 Section 1. MEDICAID PROVIDER REIMBURSEMENT RATES —— ANNUAL 1 AUTOMATIC INCREASES. Notwithstanding any provision of law 2 to the contrary regarding inflation factors or indexing of 3 Medicaid provider reimbursement rates, and in addition to any 4 other change in reimbursement rates specified for a fiscal 5 year, the department of health and human services shall 6 automatically increase the reimbursement rate of a provider 7 enrolled in the Medicaid program on July 1, annually, by either 8 applying the percentage equal to the increase in the consumer 9 price index for all urban consumers for the midwest region for 10 the most recent available twelve-month period published in the 11 federal register by the United States department of labor, 12 bureau of labor statistics, or by applying a two and one-half 13 percent increase, whichever is less, to the specific provider’s 14 current reimbursement rate. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides for an annual automatic increase in the 19 reimbursement rates for Medicaid providers. 20 The bill provides that notwithstanding any provision of 21 law to the contrary regarding inflation factors or indexing 22 of Medicaid provider reimbursement rates, and in addition 23 to any other change in reimbursement rates specified for a 24 fiscal year, the department of health and human services shall 25 automatically increase the reimbursement rate of a Medicaid 26 provider on July 1, annually, by either applying the percentage 27 equal to the increase in the consumer price index for all urban 28 consumers for the midwest region for the most recent available 29 12-month period published in the federal register by the United 30 States department of labor, bureau of labor statistics, or by 31 applying a 2.5 percent increase, whichever is less, to the 32 specific provider’s current reimbursement rate. 33 -1- LSB 2268YH (2) 90 pf/rh 1/ 1