HF 378 (LSB 2268YH (2) 90)

HOUSE FILE 378

BY  RINKER

A BILL FOR

An Act relating to annual automatic increases in Medicaid provider reimbursement rates.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  MEDICAID PROVIDER REIMBURSEMENT RATES —— ANNUAL AUTOMATIC INCREASES.  Notwithstanding any provision of law to the contrary regarding inflation factors or indexing of Medicaid provider reimbursement rates, and in addition to any other change in reimbursement rates specified for a fiscal year, the department of health and human services shall automatically increase the reimbursement rate of a provider enrolled in the Medicaid program on July 1, annually, by either applying the percentage equal to the increase in the consumer price index for all urban consumers for the midwest region for the most recent available twelve-month period published in the federal register by the United States department of labor, bureau of labor statistics, or by applying a two and one-half percent increase, whichever is less, to the specific provider’s current reimbursement rate.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides for an annual automatic increase in the reimbursement rates for Medicaid providers.
   The bill provides that notwithstanding any provision of law to the contrary regarding inflation factors or indexing of Medicaid provider reimbursement rates, and in addition to any other change in reimbursement rates specified for a fiscal year, the department of health and human services shall automatically increase the reimbursement rate of a Medicaid provider on July 1, annually, by either applying the percentage equal to the increase in the consumer price index for all urban consumers for the midwest region for the most recent available 12-month period published in the federal register by the United States department of labor, bureau of labor statistics, or by applying a 2.5 percent increase, whichever is less, to the specific provider’s current reimbursement rate.